S&P rates Stanley Black & Decker's notes A-

Standard & Poor's said it assigned an A- rating to Stanley Black & Decker Inc.'s (A/negative/A-2) $320 million floating-rate convertible senior notes due May 17, 2012.

The rating is one notch lower than the A corporate credit rating to reflect that the convertible notes are not guaranteed by any of Stanley's subsidiaries. These convertible notes were originally issued as components of the floating-rate equity units issued in March 2007. Stanley will not directly receive any proceeds from these notes.

The rating on Stanley reflects its strong market positions in a wide array of tools and hardware products, good geographic diversity, a competitive cost structure and a strong and growing market presence in the recession-resistant security products and services segment, according to the agency.

S&P said pro forma adjusted debt-to-EBITDA ratio of about 3x is weak for the current rating but that it expects Stanley to use internally generated cash flow to aggressively reduce debt during the next 18 to 24 months.

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