Standard&Poor's said today that there would be no effect on the ratings or outlook on The Scotts Co. (BB/Positive/--) following Scotts' announcement that it is postponing its proposed equity offering due to adverse market conditions. While net proceeds from the planned equity offering were expected to be used primarily for debt reduction, Standard&Poor's still expects Scotts to continue to improve its financial profile and reduce debt as a result of the company's initiatives to improve working capital management. Scotts' ratings could be raised if the company can demonstrate a sustainable improvement in its credit protection measures over time.
