A Moody's report said the US govt's.........>

US VIEW: A Moody's report said the US govt's "proposed corporate tax overhaul

would benefit all US non-financial companies except those with high debt loads.

Nevertheless, plans to impose earnings-based limits on interest deductibility

are credit negative for most companies, and particularly those issuers with low

speculative-grade ratings."

- "The benefits of a tax rate cut to 20% from 35% and full upfront capex

deductibility outweigh the cost of a limit on interest deductibility for all but

a handful of investment-grade non-financial companies," said Moody's sr vp

Christina Padgett. "And based solely on these 3 factors, few higher-rated

speculative-grade companies will be worse off because of the changes outlined in

either the House or Senate plans."

- "The Senate plan to limit interest deductions to 30% of EBIT would be more

punitive for leveraged borrowers than the House proposal to limit deductions to

30% of EBITDA, while declining credit quality, and rising interest rates, would

worsen the impact of both," she said; about "26% of spec-grade will be worse off

based on the House plan and 36% under the more restrictive Senate plan overall."