Fitch puts Maytag on watch

Fitch Ratings said it placed Maytag Corp.'s senior unsecured debt on Rating Watch negative following the company's announcement that it has agreed to be acquired by a private investor group led by Ripplewood Holdings LLC. Fitch's current rating on the senior unsecured notes is BB.

The total transaction value, including assumption of roughly $975 million of debt, is about $2.1 billion.

Fitch said the Rating Watch primarily reflects the expectation that Maytag's leverage will increase considerably, uncertainty related to the steps new owners will take to improve manufacturing efficiencies, ongoing weakness from operations, and relentless competition. In addition, the potential for a new credit agreement securing its receivables and inventories is high, which would subordinate existing bondholders.

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