Operating performance and credit metrics continue to weaken for U.S.-based Scotts Miracle-Gro. We are affirming our ratings on Scotts, including our 'BB+' corporate credit rating, and revising the outlook to negative from stable. The negative outlook reflects our view that leverage could remain at currently elevated levels if operating performance during the company's seasonal peak does not improve. On May 17, 2013, Standard&Poor's Ratings Services affirmed its 'BB+' corporate credit rating on Ohio-based Scotts Miracle-Gro Co. and revised the outlook to negative from stable. We also affirmed our 'BB-' rating on all of the company's senior unsecured debt. The recovery ratings remain unchanged at '6', indicating our expectation for negligible (0% to 10%) recovery for noteholders in the
