Stanley Black&Decker Inc.'s Proposed Senior Unsecured Notes Rated 'A'

TORONTO (S&P Global Ratings) Oct. 29, 2020--S&P Global Ratings today assigned its 'A' issue-level rating to New Britain, Conn.-based Stanley Black&Decker Inc.'s proposed senior unsecured notes. All our other ratings on the company are unchanged. We expect Stanley to use the proceeds from the issuance for general corporate purposes, including to repay maturities in the next few years. The company has reported an increase in summer 2020 sales that should improve its debt-to-EBITDA ratio, which was 3.2x as of June 30, 2020, its highest intrayear leverage in more than 15 years. Good free cash conversion should enable sufficient discretionary cash flow after about $400 million of annual dividends to keep adjusted debt near 2.5x by year-end 2020. We

...October 29, 2020 TORONTO (S&P Global Ratings) Oct. 29, 2020--S&P Global Ratings today assigned its 'A' issue-level rating to New Britain, Conn.-based Stanley Black & Decker Inc.'s proposed senior unsecured notes. All our other ratings on the company are unchanged. We expect Stanley to use the proceeds from the issuance for general corporate purposes, including to repay maturities in the next few years. The company has reported an increase in summer 2020 sales that should improve its debt-to-EBITDA ratio, which was 3.2x as of June 30, 2020, its highest intrayear leverage in more than 15 years. Good free cash conversion should enable sufficient discretionary cash flow after about $400 million of annual dividends to keep adjusted debt near 2.5x by year-end 2020. We base this ratio on Stanley's disclosed negative 3% to positive 5% revenue change scenarios and quickly implemented cost reductions. Stanley has boosted revenues from home repair and renovations amid COVID-19 pandemic-related stay-at-home...

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