NEW YORK (Standard&Poor's) June 23, 2005--Standard&Poor's Ratings Services said today that the ratings and outlook on The Scotts Miracle-Gro Co. (BB/Positive/--) would not be affected following the announcement that 1) its board of directors has instituted a quarterly dividend of 25 cents per share; 2) it is initiating a long-term strategic improvement plan; and 3) has revised its fiscal 2005 earnings guidance downward. Standard&Poor's expects that despite unfavorable weather conditions in parts of the country, Scotts' fiscal 2005 operating cash flows will be sufficient to fund its business initiatives including acquisitions, expected cash charges associated with its plans to improve its organizational effectiveness, and dividends. The ratings could still be raised if the company
