...October 25, 2019 TORONTO (S&P Global Ratings) Oct. 25, 2019--S&P Global Ratings said today that Stanley Black & Decker Inc.'s (A/Stable/A-1) debt leverage could remain above our downgrade threshold for a second consecutive year in 2019. Slower earnings growth mostly because of tariff costs in 2019 is compounding elevated debt levels after two years of acquisitions, but we expect solid free cash conversion and moderate financial policies should return debt leverage below our 2x threshold by the end of 2020, barring a sharp deterioration in market conditions by then. We expect planned cost reductions outlined in yesterday's third-quarter earnings call will not improve the company's leverage metrics until well into 2020 because the associated charges and cash outlays will have an adverse impact on the third and fourth quarters this year, with benefits not realized for several quarters. Stanley has a policy of splitting its free cash flow between shareholder returns and acquisitions, but has...
