S&P revises Energizer to negative

S&P said it revised the outlook on Energizer Holdings Inc. to negative from positive and affirmed the BB corporate credit rating.

At the same time, the agency placed the BB issue-level rating on Energizer's $600 million senior unsecured notes due 2025 on CreditWatch with negative implications.

The recovery rating on the notes remains 3, indicating an expectation of meaningful recovery (50%-70%; rounded estimate 50%) in the event of a default.

S&P said the revision reflects the expected deterioration of Energizer's credit metrics due to its proposed acquisition of Spectrum Brands' global battery and portable lighting business, which it will finance primarily with new debt.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.