Moody’s gives Scotts notes Ba3

Moody’s Investors Service said it gave Scotts Miracle-Gro Co.’s planned $500 million of senior unsecured notes due 2031 a Ba3 rating. Concurrently, the agency upgraded Scotts’ senior unsecured debt rating to Ba3 from B1.

“The upgrade of Scotts' senior unsecured credit rating to Ba3 from B1 reflects a lower mix of secured debt in the capital structure as a result of the company paying down outstanding borrowings on its senior secured revolving credit facility with the proceeds of the proposed notes. The lower level of secured debt and higher mix of unsecured debt in the capital structure strengthens recovery prospects for unsecured debt in the event of a default,” Moody’s said in a press release.

The agency also affirmed Scotts’ Ba2 corporate family rating and Ba2-PD probability of default rating.

The speculative grade liquidity rating of SGL and stable outlook are unchanged.

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