Moody's rates Newell Rubbermaid notes Baa3

Moody's Investors Service said it assigned a Baa3 rating to Newell Rubbermaid, Inc.'s $550 million proposed offering of senior unsecured notes, and affirmed its Baa3 long-term rating and prime-3 short-term ratings.

The outlook is stable.

The key factors driving the ratings are the company's diversified range of product lines that target different price points - albeit within narrow categories, well-known brands, footprint at large, well-established retailers, improvements in operating efficiency, historically consistent profitability and positive free cash flows, Moody's said.

These positive attributes are offset by the cyclical and discretionary nature of its product offerings, exposure to potentially volatile raw material costs, modest geographic diversification, high leverage and credit metrics that are weak, the agency said.

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