The ratings on Ohio-based The Scotts Miracle-Gro Co. (Scotts) reflects Standard&Poor's Ratings Services' view that the company's financial risk profile continues to be "significant," particularly given the company's moderate financial policy and our expectations for credit metrics to remain relatively stable. In addition, we believe the company's business risk profile continues to be "fair," reflecting the company's strong market positions, well-recognized brand names, and favorable long-term demographic trends in the consumer lawn and garden care segment. Our business risk assessment also incorporates the fluctuation in operating performance due to the highly seasonal and weather-dependent nature of the industry, as well as fluctuations in commodity and energy costs. The company's credit metrics declined modestly due to weakened operating performance
