Moody’s rates Fortune Brands notes Baa3

Moody's Investors Service said it assigned a Baa3 rating to Fortune Brands Home & Security, Inc.'s proposed senior unsecured notes due 2023.

Proceeds from the proposed notes will be used to reduce borrowings under the company's senior unsecured revolving credit facility (unrated) expiring in 2021.

The agency said terms and conditions of the proposed notes will be similar to Fortune Brands' existing Baa3 senior unsecured notes due 2020 and 2025.

The proposed notes will rank pari passu to Fortune Brands' existing notes, revolving credit facility and term loan, Moody’s said.

Fortune Brands' Baa3 senior unsecured rating was not impacted by the transaction.

The outlook is stable.

“We view reduced revolver borrowings as a credit positive, since Fortune Brands now has sufficient availability to repay its term loan maturing March 29, 2019, and removes a liquidity risk,” the agency said in a news release.

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