S&P alters Stanley Black view to stable

S&P said it revised Stanley Black & Decker Inc.’s outlook to stable from negative and affirmed all its ratings, including the BBB+ ratings on its junior subordinated debentures and cumulative perpetual preferred stock hybrid.

“Lower net debt and an earnings bounce should improve adjusted leverage in 2021. Stanley's debt levels have dropped by more than $1 billion year-over-year to March 31, 2021, peaking at almost $6 billion after the $1.3 billion acquisition of Consolidated Aerospace Manufacturing LLC (CAM), a supplier to the stressed aerospace industry and the Boeing 737 MAX in particular,” S&P said in a press release.

The outlook incorporates an expectation that adjusted debt to EBITDA will stay under 2x in 2021 and 2022, even if the company acquires the remaining stake of MTD Products Inc. later this year, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.