NEW YORK (Standard&Poor's) July 9, 2003--Standard&Poor's Ratings Services said today that its ratings and outlook on The Stanley Works Co. (A/Negative/A-1) have not been affected by the company's announcement that it will settle the remaining $113 million of its original $213 million equity hedge with cash installments from September 2003 through June 2007. This transaction, which increases the company's debt, was already considered by Standard&Poor's when it revised Stanley's outlook to negative in April 2003. In addition, Stanley previously borrowed $100 million and repurchased shares to unwind the first portion of the hedge. Standard&Poor's believes that the company's willingness to use debt and repurchase shares so closely on the heels of the
