S&P drops Energizer outlook to negative

SP said it revised its outlook for Energizer Holdings Inc. to negative from stable and affirmed its B+ issuer credit rating, BB senior secured debt ratings, and B senior unsecured debt ratings. The recovery ratings on this debt remain at 1 and 5, respectively.

“The outlook revision reflects Energizer's weaker-than-expected operating results due to input cost inflation and global supply-chain disruptions,” the agency said in a press release.

Additionally, S&P said it could downgrade Energizer over the next 12 months if it is unable to deleverage in line with expectations.

The agency noted Energizer’s S&P Global Ratings-adjusted leverage was 6.5x as of June 30, 2022, above its 6x downgrade trigger, and forecasts it to be about 6.3x for fiscal 2022, improving to the high-5x area by the end of 2023.

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