S&P rates Fortune notes BBB

Standard & Poor’s said it assigned a BBB rating to Fortune Brands Home & Security Inc.’s proposed senior notes.

The company intends to use the note proceeds to repay debt outstanding under its $975 million committed revolving credit facility.

The agency also said it may use any remaining proceeds to repay a portion of its $525 million term loan facility.

The ratings reflect the company’s satisfactory business risk profile and intermediate financial risk profile, the latter of which is driven by expectations of total leverage of 2.0x to 2.5x over the next few years, S&P said.

The company is expected to produce solid annual revenue growth in the low double-digits over the next two years based on a continuing recovery in repair and remodeling spending and housing starts, the agency said.

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