Moody's: Rayovac cut to stable, loan rated B1, notes B3

Moody's Investors Service said it affirmed the ratings of Rayovac Corp. and United Industries Corp. and revised Rayovac's outlook to stable from positive following the announcement that Rayovac has agreed to purchase United Industries for around $1.3 billion in cash, stock and debt assumption.

In addition, Moody's assigned a B1 rating to Rayovac's proposed $1.2 billion senior secured credit facilities and a B3 rating to its proposed $500 million senior subordinated notes offering, which will be used to finance the cash portion of the transaction and related fees, as well as to refinance of all of United Industries' debt and Rayovac's existing senior secured facilities.

Moody's said the revision of Rayovac's outlook to stable from positive reflects a deceleration of the time-frame over which the agency is likely to consider a ratings upgrade, given the relative complexity of the integration, the moderate increase in Rayovac's leverage and the likelihood of additional acquisitions in the pet supplies business.

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