...Negative Outlook: The Negative Outlook reflects a shift in Hubbell's credit metrics to levels that are at the weak end of Fitch Ratings' expectations for the `A' rating. Fitch believes that Hubbell's credit metrics could remain at these levels for an extended period or weaken further should sales or margins come under additional pressure or acquisition spending exceed FCF. There is limited cushion in the rating for additional leveraging actions or operating weakness. Shareholder-Friendly Posture: A reclassification of Hubbell's shares completed in December 2015 triggered a $200 million payment to the `A' shareholders. In addition, the company completed a $250 million share repurchase authorization in the first half of 2016. Higher debt levels to finance this spending pushed debt/EBITDA up to 1.7x at June 30, 2016 from 1.0x at the end of 2015. Fitch believes leverage will gradually improve as EBITDA recovers but that debt/EBITDA will remain in the mid-1x range over the medium term. Slower...
