S&P downgrades Watts Water

Standard & Poor's said it lowered the corporate credit rating on Watts Water Technologies Inc. to BBB- from BBB.

The outlook is stable.

S&P said the downgrade reflects risk of lower growth prospects resulting from the weak U.S. residential sector, commodity price volatility and the partial use of liquidity to fund share repurchases.

The ratings reflect the company's intermediate financial profile, which the agency said is tempered by free cash flow generation and credit measures that are below average.

The company's satisfactory business risk profile, underpinned by leading market positions and a track record of stable profitability, supports the rating, according to S&P.

Watts' debt-to-EBITDA ratio is expected to be between 2.5 times and 3 times.

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