Moody’s ups HRG notes, affirms Spectrum

Moody's Investors Service said it affirmed the ratings of Spectrum Brands, Inc., including the B1 corporate family rating and B1-PD probability of default rating.

The agency said the action follows the merger between HRG Group, Inc. and Spectrum Brands.

HRG's B2 corporate family rating, B2-PD probability of default rating and speculative grade liquidity ratings will be withdrawn.

Moody's also upgraded the unsecured notes of HRG to B3 from Caa1.

The merger between Spectrum and HRG closed last month. HRG is now the ultimate parent company and changed its name to Spectrum Brands Holdings, Inc.

"Assuming the majority of proceeds from the pending battery business sale are used to repay debt, pro forma debt/EBITDA is below 5 times following the merger," Kevin Cassidy, senior credit officer at Moody's, said in a news release.

The agency said the upgrade of HRG’s senior unsecured notes reflects their structural subordination to substantially all debt and non-debt obligations of Spectrum Brands.

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