S&P revises Edgewell view to negative

S&P said it revised the outlook for Edgewell Personal Care Co. to negative from stable, but affirmed all its ratings for the company, including the BB issuer rating.

The outlook revision follows the company’s announcement it plans to acquire Cremo for $235 million in cash.

“The acquisition is likely to result in additional credit metric deterioration, including adjusted leverage at least temporarily exceeding 4x. Although Edgewell was already facing challenges from the coronavirus pandemic and accompanying economic fallout, the acquisition of Cremo will reduce liquidity and increase adjusted leverage,” S&P said in a press release.

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