Fitch affirms Spectrum Brands

Fitch Ratings said it affirmed the ratings of Spectrum Brands, Inc. as follows: issuer default rating CCC, senior secured bank facility B/RR1 and senior subordinated debentures CCC-/RR5.

The outlook has been revised to negative from stable, the agency said.

The rating reflects Spectrum Brands's high leverage with FFO adjusted leverage of 9 times as well as debt/EBITDA of 8.3x for the last 12 months ending Dec. 31, Fitch said, noting that the company made three major acquisitions since 2003 to lessen its dependence on batteries.

The acquisitions were funded with debt and Spectrum Brands became highly leveraged, Fitch noted, adding that the company's credit metrics, diverse portfolio and minimal debt amortizations are encapsulated in the CCC issuer default rating.

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