MOODY'S MAY DOWNGRADE AFG <AFG>, GENCORP <GY>
Moody's Investors Service Inc said it
may downgrade the debt of AFG Industries Inc and GenCorp Inc.
    The rating agency cited a 2.2 billion dlr tender offer for
GenCorp by General Acquisitions Inc, a unit of a partnership
affiliate of AFG and Wagner and Brown.
    Moody's said it would study the proposed acquisition's
effects on GenCorp's cash flow and debt protection measures and
on AFG's financial condition. It will also review implications
of any defensive actions by GenCorp.
    AFG has Ba-1 senior subordinated debt and Ba-2 convertible
subordinated debt. GenCorp has Ba-2 subordinated debt.
                                         
 Reuter
