Moody's ups Edgewell

Moody's Investors Service said it upgraded Edgewell Personal Care Co.'s corporate family rating to Ba3 from B1 and probability of default rating to Ba3-PD from B1-PD. Concurrently, Moody's upgraded the ratings on Edgewell's senior unsecured notes to Ba3 from B3.

Moody's also withdrew the ratings on the company's proposed senior secured credit facility, including the secured revolver and term loans, that were part of the funding for the now-canceled acquisition of Harry's. The rating outlook is stable.

The upgrade reflects Edgewell's much lower leverage position following termination of the company's $1.4 billion acquisition of Harry's after the Federal Trade Commission filed a lawsuit to prevent the transaction. Excluding the acquisition, debt to EBITDA financial leverage will remain at about 3.4x (including Moody's adjustments) for the 12-month period ended Dec. 31 instead of increasing to roughly 5.7x pro forma for the Harry's transaction.

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