Standard&Poor's Ratings Services said today that its ratings and outlook on The Stanley Works Co. (A/Stable/A-1) would not change following the company's recent announcement regarding disappointing fourth quarter performance. Weak industrial markets, the West Coast dock strike, higher material costs, and a sharp drop in the run-rate of productivity gains adversely affected gross margins more than the company had expected. Stanley also recorded noncash charges totaling $22 million. Nonetheless, free cash flow remains solid and debt to capital, while elevated following the recent acquisition of Best Lock Corp., remains in line with expectations. However, Standard&Poor's will monitor the success of the company's initiatives to improve productivity over the next few quarters, given that industrial markets are
