S&P alters Edgewell outlook to stable

S&P said it changed its outlook for Edgewell Personal Care Co. to stable from negative and affirmed its BB rating on the company and its senior unsecured debt.

“Edgewell intends to operate at a company-defined net debt leverage ratio of 2x-3x. We think this is achievable given our expectation for annual FOCF of about $160 million in fiscals 2023 and 2024. We expect the company will continue to pay dividends and engage in share repurchases, albeit at levels that do not impede its deleveraging target. Bolt-on acquisitions are also possible that could temporarily weaken credit metrics.

“The company demonstrated its ability to deleverage following its $235 million acquisition of Cremo in 2020 and $310 million acquisition of Billie in 2021, despite being subject to substantial macroeconomic headwinds,” S&P said in a press release.

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