Concerns about Kennametal’s cash flows are slightly mitigatedby its decision to lower capital spending, increase non-cash cost-savinginitiatives and significantly reduced discretionary spending. Leverage is expected to increase and remain higher than KMT’s historical levelsas a result of depressed earnings and reduced cash flows. Leverage could beelevated for several quarters until an eventual recovery in North America andEurope. The Negative Outlook reflects Fitch’s expectation that KMT’s financial measureswill be weak until operating results improve.

In the absence of a return tostronger demand, KMT’s debt could remain high relative to its earnings and cashflow which could potentially lead to another rating downgrade. However, KMT istaking meaningful steps to reduce its cost structure and should benefit quicklywhen demand improves. As a result, the Rating Outlook could be revised to Stablewhen demand and margins improve. In addition, Fitch anticipates the company willfollow financial policies consistent with those in the past when leverage wasmuch lower than it is currently.

KMT has sufficient liquidity to cope with its near-term challenges. Thecompany’s higher leverage, however, increases the risk of a covenant defaultunder its bank facility. KMT’s future liquidity would be dependent on how such adefault is resolved if it were to occur. The company’s liquidity at March 31,2009 included $98 million of cash plus availability of approximately $340million under a $500 million bank revolver that matures in 2011, offset by $43million of short-term debt. Fitch views KMT’s cash requirements after capitalexpenditures and dividends as manageable due to its fully funded domesticpension at the end of fiscal 2008 and not having any debt maturities until June2012.

Fitch’s rating definitions and the terms of use of such ratings are available onthe agency’s public site, Published ratings, criteria andmethodologies are available from this site, at all times. Fitch’s code ofconduct, confidentiality, conflicts of interest, affiliate firewall, complianceand other relevant policies and procedures are also available from the ‘Code ofConduct’ section of this site. Fitch Ratings, ChicagoCheryl Peterson, 312-606-2309Eric Ause, CFA, 312-606-2302Cindy Stoller, 212-908-0526(Media Relations, New York)Copyright Business Wire 2009. NEW YORK, NY, May 08 (MARKET WIRE) — Hard rock mavens Staind, Shinedown, Chevelle and Halestorm will beteaming up this summer for the “Stimulate This!” tour, a four-band billdesigned to offer fans maximum value at a minimal price.Making its way across the U.S. beginning July 1 and extending throughearly September, the “Stimulate This!” tour will hit more than 40 U.S.markets, including some of the hardest hit by the recession. In a show ofsolidarity for their fans, the four bands have worked closely with theconcert promoters to create a package of exceptional value for ticketbuyers. Through their collective efforts, they’ve been able to maintainmodest base ticket prices that remain mostly under $40 each — half thecost of comparable multi-band summer tour packages — with some venuesoffering lawn seats for less than $10.

Additionally, each tour stop willinclude special promotions for ticket holders that will vary from marketto market, but could include discounts on concessions at the venue duringthe show, store discounts at local retailers, and online rebates for bandmerchandise to name a few.Inspired by the bands’ efforts to craft a cost-efficient tour for theirfans during these hard times, Atlantic Records will give away a pair oftickets to five fans in every market who pose the best reason as to whythey need a free night of rock. Fans can send their stories and enter thecontest through Atlantic Records’ website, Moredetails will be available soon on the website.”Wall Street got its bailout; now it’s time for rock fans to get theirs,”said Staind frontman Aaron Lewis. “This summer, we want to give our fansone night where they can forget about everything else and experience agreat rock show.”"We’ve always said that we, as a band, only answer to one boss… andthat’s everyone in the audience,” offers Shinedown’s Brent Smith “It’sour job.. our privilege to offer our fans an escape.