ALLIS-CHALMERS <AH> DEBT, PAPER CUT BY MOODY'S
Moody's Investors Service said it
downgraded 95 mln dlrs of outstanding Allis-Chalmers Corp
issues. It lowered the sinking fund debentures to Ca from B-3
and the Series C preferred stock to Ca from Caa.
    Moody's cited as justification the company's filing for
court protection under Chapter 11 of the Federal Bankruptcy
Code. Also, the agency noted the company's inability to
restructure its debt obligations.
    Allis-Chalmers Corp is a manufacturer of air quality
control, fluids handling and solid materials processing
equipment.
 Reuter
