The ratings are based upon Scotts' competitive position and leading brand names in the consumer lawn and garden market in the U.S. and Europe. These strengths are partially offset by high debt levels following a series of debt-financed acquisitions during the past three years. Despite the increased financial risk incurred due to higher debt levels resulting from these acquisitions, integration risk has been limited. The acquisitions improved Scotts' business position by broadening the company's product portfolio, especially in U.S. pesticides, and by providing Scotts with a strong presence in the European market. International sales now account for about 20% of total sales. Scotts has been successful so far in limiting the negative effect of the U.S. patent expiration for Roundup's
