Moody's confirms Energizer

Moody's Investors Service said it confirmed Energizer Holdings, Inc.'s Baa3 senior note rating, concluding the review for downgrade that began April 30 following Energizer's announced plan to split up its household products and personal care businesses. The outlook is negative.

The confirmation reflects Moody's expectation that Energizer will reduce its debt-to-EBITDA ratio to the 3 times range within 12 to 18 months following the spinoff and that the company's remaining personal care businesses will generate stable revenue and meaningfully positive free cash flow.

The agency said the negative outlook reflects the uncertainty regarding the company's ability to reduce and sustain the debt-to-EBITDA ratio in a 3 times range since it has not finalized certain aspects of the spinoff – including the standalone cost structures, distribution arrangements and capital structures.

The debt-to-EBITDA ratio was 3.7 times for the last 12 months ended June 30.

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