TEXT-S&P rates Church & Dwight's proposed notes 'BBB'

Wed Sep 19, 2012 12:29pm EDT

Sept 19 - Standard & Poor's Ratings Services said today that it assigned its
'BBB' senior unsecured debt rating to Princeton, N.J.-based Church & Dwight Co.
Inc.'s proposed $400 million notes due 2022. We expect the proposed
notes to be issued under the consumer products company's Rule 415 shelf
registration statement filed May 12, 2010.

We expect the company to use net proceeds from the note issuance, in 
combination with commercial paper borrowings, to finance the acquisition of 
Avid Health Inc. Pro forma for the notes and incremental commercial paper 
borrowings to complete the acquisition, total debt outstanding is about $932.2 
million as of June 30, 2012.

All of our existing ratings on Church & Dwight, including the 'BBB' long-term 
and 'A-2' short-term corporate credit rating, are unchanged. The outlook is 
positive.

Our assessment of Church & Dwight's financial risk as "intermediate" 
incorporates the assumption that its credit ratios will weaken over time--most 
likely due to debt-financed acquisitions--including total leverage in the 
low-2x area and funds from operations (FFO) to total debt in the 35% to 40% 
range. Pro forma for this debt-financed acquisition, we estimate leverage and 
FFO to total debt of about 1.6x and 45%-50%, respectively, levels which are 
consistent with our "modest" financial risk descriptor. 

Our assessment of the company's business risk as "satisfactory" incorporates 
its diverse product portfolio within the household and personal care sector, 
its established consumer brands, and market share gains that we partly 
associate with a sizable mix of value offerings.

RELATED RESEARCH AND CRITERIA
     -- Bulletin: Church & Dwight Co. Inc.'s Plans To Acquire Avid Health 
Don't Affect Ratings, Aug. 21, 2012
     -- General Criteria: Understanding Standard & Poor's Rating Definitions, 
June 3, 2009
     -- Business Risk/Financial Risk Matrix Expanded, May 27, 2009
     -- 2008 Corporate Criteria: Analytical Methodology, April 15, 2008

RATING LIST
Church & Dwight Co. Inc.
 Corporate credit rating           BBB/Positive/A-2

Rating Assigned
Church & Dwight Co. Inc.
 Senior unsecured
  $400 million notes due 2022      BBB


Complete ratings information is available to subscribers of RatingsDirect on 
the Global Credit Portal at www.globalcreditportal.com. All ratings affected 
by this rating action can be found on Standard & Poor's public Web site at 
www.standardandpoors.com. Use the Ratings search box located in the left 
column.
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