S&P lowers Energizer, rates notes B+

S&P said it lowered the issuer credit rating on Energizer Holdings Inc. to BB- from BB and removed all ratings from CreditWatch, where they were placed with negative implications in November.

The agency also said it affirmed the BB+ rating on the senior secured debt with the recovery rating revised to 1 from 2, and lowered the rating on the senior unsecured debt to B+ from BB- with the recovery rating unchanged at 5.

S&P also said it assigned a B+ rating to the proposed $600 million senior unsecured notes due 2027 with a recovery rating of 5.

The downgrades reflect the increased risk of integrating two businesses that have underperformed over the past year and Energizer's willingness to increase leverage significantly, the agency said.

The stable outlook reflects an expectation that the company will maintain its good global market position and successfully integrate acquisitions, S&P said.

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