NEW YORK (Bloomberg) ? Caterpillar Inc. and Ingersoll-Rand Co. had their stock ratings cut by UBS on expectations demand for mining equipment will tail off and Chinese construction and US homebuilding markets will slow.

Analyst David Bleustein at UBS cut his recommendation for Peoria, Illinois-based Caterpillar, the world's largest maker of earth-moving equipment, to "neutral 1" from "buy 1" and Bermuda-based Ingersoll-Rand, maker of Bobcat machinery, to "neutral 2" from "buy 2."

"We expect investors to reduce positions in early cycle industrial companies in response to plummeting orders for heavy trucks, decelerating Caterpillar dealer monthly sales and a slower housing market," Bleustein wrote in a note.