...May 7, 2020 TORONTO (S&P Global Ratings) May 7, 2020--S&P Global Ratings today assigned its '###+' issue-level rating to U.S.-based Stanley Black & Decker Inc.'s proposed $750 million of preferred stock, which it is remarketing subsequent to the mandatory conversion of the previous instrument into common equity. The issue-level rating is two notches below our long-term issuer credit rating on the company to reflect the instrument's subordination and the optional deferability of the preferred dividends. In addition, we will treat the new preferred stock as having minimal equity credit (0% equity), rather than high equity credit (100% equity), because the mandatory conversion to common equity will occur at closing and the new securities will have dividend step-ups that incentivize their redemption in three years. We revised our outlook on Stanley to negative on March 26, 2020, because of its recent debt-funded acquisitions and the subsequent reduction in its profit due to the coronavirus...
