Moody's rates Scotts loan Ba1

Moody's Investors Service assigned a Ba1 rating to The Scotts Co.'s proposed $200 million senior secured term loan A facility, which in combination with $100 million in cash prepayment, will reduce the company's term loan B facility from $500 million to $200 million.

Moody's also upgraded Scotts' senior implied, senior unsecured issuer and senior subordinated notes ratings by one notch. The Ba1 ratings on Scotts' existing senior secured credit facilities and the SGL-2 speculative-grade liquidity rating were affirmed.

Moody's said the rating actions reflect Scotts' improved credit profile given the interest expense benefits of the refinancing, the prepayment of $100 million of term loan borrowings and continued strong operating performance through its key selling season.

The outlook is stable.

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