S&P ups Edgewell Personal Care

S&P said it raised its issuer rating for Edgewell Personal Care Co. to BB from BB- and its rating on Edgewell’s senior unsecured notes to BB from B+. The upgrades follow the termination of the company’s proposed merger with Harry’s Inc.

“We are also revising our recovery rating on the notes to 3 from 5. The 3 recovery rating indicates our expectation for meaningful recovery (50%-70%; rounded estimate: 65%) in the event of a payment default. The two-notch upgrade of our issue-level rating incorporates one notch associated with the issuer credit rating upgrade and one notch related to the unsecured creditors' improved recovery prospects following the termination of the Harry's transaction, which would likely have added a material amount of priority secured debt to the company's capital structure,” S&P said.

S&P also withdrew the BB ratings on the $1.6 billion senior secured credit facilities that were contemplated for the deal. The outlook is stable.

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