Fitch cuts Stanley Black & Decker notes to BBB+

Fitch Ratings said it downgraded Stanley Black & Decker Inc.'s $320 million floating-rate convertible notes to BBB+ from A-. Stanley is currently remarketing these convertible notes, and to facilitate this process, the Black & Decker Corp. guarantee of the convertible notes is being released, Fitch said.

This action does not affect any of the company's other unsecured debt. All of the company's other unsecured debt have cross guarantees among Stanley Black & Decker and Black & Decker.

Stanley Black & Decker has an issuer default rating of A-, bank credit facilities of A-, senior unsecured notes of A-, junior subordinated notes of BBB, short-term issuer default rating of F2 and commercial paper rating of F2. Black & Decker and Black & Decker Holdings LLC have an issuer default rating of A- and senior unsecured notes rating of A-.

The outlook is stable.

The ratings reflect the cyclicality of some of the company's end markets and integration risk associated with its recent merger with Black & Decker, although overall risk is mitigated by considerable liquidity, expectation of decreasing leverage and substantial cost synergies of at least $350 million, Fitch said.

Revenue growth synergies are anticipated and, along with reduced costs, should enhance future cash flow, the agency said.

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