U.S.-based The Scotts Miracle-Gro Co. (Scotts) continues to reposition its business by focusing on North American consumer products following several acquisitions, the contribution of its lawn care business to the TruGreen joint venture, and the announcement that it is exploring strategic options for its modestly sized, lower profit European business. We expect Scotts to scale back acquisition activity within the next few months, sustain its good position in the mature lawn, garden, and pest control businesses, and use discretionary cash flow for share repurchases such that adjusted debt to EBITDA weakens to about 3.5x over the next few years. We are affirming our 'BB' corporate credit rating on the company and 'B+' senior unsecured debt rating with a recovery rating
