Fitch rates Stanley Black & Decker notes BBB

Fitch Ratings said it assigned a BBB rating to Stanley Black & Decker, Inc.'s proposed offering of $500 million principal amount of junior subordinated debentures due 2052.

This security will be assigned 50% equity credit.

The company has an issuer default rating of A-, bank credit facility rating of A-, senior unsecured notes rating of A-, junior subordinated notes rating of BBB, short-term issuer default rating of F2 and commercial-paper rating of F2.

Black & Decker Corp. has an issuer default rating of A- and senior unsecured notes rating of A-. Black & Decker Holdings LLC has an issuer default rating of A- and a senior unsecured notes rating of A-.

The junior subordinated notes will be equal in right of payment with the company's existing junior subordinated debt.

The proceeds will be used for general corporate purposes, which may include repayment of short-term debt and the refinancing of recent and near-term debt maturities, Fitch said.

The outlook is stable.

The ratings reflect a geographically well-balanced company with leading market positions and strong brand recognition in its various business segments, Fitch said.

The ratings also incorporate the cyclicality of certain of the company's end-markets and integration risk associated with its aggressive acquisition strategy, the agency said, although overall risk is mitigated by merger integration expertise, considerable liquidity and expectation of decreasing leverage.

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