Moody’s Investors Service today placed Newell Brands’ ratings on review for downgrade. The rating agency said this follows the significant amount of change the company is expected to undergo as part of the company’s recently announced accelerated transformation plan.
Ratings Rationale
Moody’s rating review will focus on Newell’s operating strategy and financial policy as it attempts to strengthen its capital structure while also increasing shareholder returns. In its review, the rating agency will also stress test the company’s operating performance given a reasonable economic downturn and assuming the company does not realize all of the cost savings and margin improvements it is expecting. The review will also assess the company’s pace of reducing financial leverage to its stated target of 3.5 times debt/EBITDA.
Ratings Placed on Review for Downgrade
- Senior Unsecured rating at Baa3;
- Medium Term Note Program at (P)Baa3;
- Commercial Paper at Prime-3
Newell Brands includes Paper Mate, Sharpie, Dymo, EXPO, Parker, Elmer’s, Coleman, Jostens, Marmot, Oster, Sunbeam, FoodSaver, Mr. Coffee, Rubbermaid Commercial Products, Graco, Baby Jogger, NUK, Calphalon, Rubbermaid, Contigo, First Alert and Yankee Candle.
