Fitch: Deal benefits JohnsonDiversey

Fitch Ratings said it views the announced $477 million equity investment by a Clayton, Dubilier & Rice managed fund in JohnsonDiversey, Inc.'s and the recapitalization, which include debt financing of about $1.9 billion, as moderately positive for JohnsonDiversey's ratings.

The ratings include an issuer default rating of B-, senior secured bank credit facilities of BB- with recovery rating of RR1 and subordinated debt rating of B- with recovery rating of RR4. JohnsonDiversey Holdings Inc. has an issuer default rating of B- and senior discount notes rated CCC with recovery rating of RR6.

The outlook is negative, reflecting JohnsonDiversey's continued negative free cash flow levels, weak credit metrics after adjusting for debt levels at the parent company and the potential for deteriorating earnings and cash flow levels stemming from weak global economic conditions, Fitch said.

Another key driver of the negative outlook includes concerns about potential changes in the capital structure of the company stemming from the December 2010 debt maturities and the May 2010 'put' by Unilever, the agency said.

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