DEERE <DE> AND UNIT DEBT DOWNGRADED BY MOODY'S
Moody's Investors Service Inc said it
downgraded 1.8 billion dlrs of long-term debt of Deere and Co
and its finance unit John Deere Credit Co.
    Downgraded were senior notes and debentures to Baa-2 from
A-3 and subordinated debt to Baa-3 from Baa-1. The senior debt
includes John Deere Credit Co's guaranteed Eurobonds.
    Moody's cited lower agricultural equipment demand due to
depressed conditions in the farm economy. It also noted that
equipment prices are pressured by competition. Deere is the
industry's dominant producer but overcapacity keeps cash flow
and debt protection measures under pressure, Moody's noted.
 Reuter
