Tear Sheet: Stanley Black&Decker Inc.

We anticipate the company will continue to focus on cost-reduction programs, which will improve its EBITDA margins and support deleveraging despite softer business conditions and seasonal factors. In addition, we anticipate further product simplification and destocking as consumer demand rebounds amid dissipating recessionary pressures in 2024, based on S&P Global Ratings' slightly improved macroeconomic forecasts (see "Economic Outlook U.S. Q4 2024: Growth And Rates Start Shifting To Neutral?, published Sept. 24, 2024). As such, we continue to expect S&P Global Ratings-adjusted margins of 10%-12%. Further, we expect positive free cash flow, greater margins, and a commitment from Stanley to retain a strong investment-grade rating. Stanley has taken significant steps to improve profitability through product simplification, sourcing efficiencies, optimizing corporate structure,

...Rating Component Scores Foreign currency issuer credit rating A-/Negative/A-2 Local currency issuer credit rating A-/Negative/A-2 Business risk Strong Country risk Very Low Industry risk Intermediate Competitive position Strong Financial risk Intermediate Cash flow/leverage Intermediate Anchor a- Diversification/portfolio effect Neutral (no impact) Capital structure Neutral (no impact) Financial policy Neutral (no impact) Liquidity Strong (no impact) Management and governance Neutral (no impact) Comparable rating analysis Neutral (no impact) Stand-alone credit profile a-...

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