Moody’s cuts Edgewell, notes to Ba3

Moody's Investors Service said it downgraded Edgewell Personal Care Co.'s corporate family rating to Ba3 from Ba2, probability of default rating to Ba3-PD from Ba2-PD and senior unsecured notes to Ba3 from Ba2.

The speculative grade liquidity rating was affirmed at SGL-2.

The outlook is stable.

Moody’s said the downgrade reflects Edgewell's weakened credit metrics stemming from weaker-than-expected earnings from its wet shave and feminine care businesses.

Debt to EBITDA financial leverage (including Moody's adjustments) is relatively high at 4.5 times, and the agency expects leverage reduction to be hampered by low organic earnings growth over the next year.

In addition, Moody's said it expects the company to continue to engage in debt financed acquisitions and share repurchases.

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