...February 22, 2022 TORONTO (S&P Global Ratings) Feb. 22, 2022--S&P Global Ratings today assigned its 'A' issue-level rating to Stanley Black & Decker Inc.'s proposed senior unsecured notes due 2025 and 2032, which it will use to bolster the funding for its recent mergers and acquisitions (M&A) and proposed stock buybacks. We view the transaction as credit neutral because the company is replenishing its cash reserves to maintain steady elevated S&P Global Ratings-adjusted net debt of $8 billion. That said, we believe it will likely need to improve its profit and cash flow in 2022 to maintain debt to EBITDA below our 2x downside threshold for the current rating. The company proposed a $4 billion share buyback program in December 2021, which coincided with the $3.2 billion sale of its security business and the $1.7 billion of spending to complete its acquisition of MTD Products Inc., but has since reported a $1.6 billion year-over-year drop in its free cash flow that caused its debt levels...
