TEXT - S&P rates Newell Rubbermaid snr unsecured notes 'BBB-'
Nov 30 - Standard & Poor's Ratings Services said today that it assigned a 'BBB-' senior unsecured debt rating to Atlanta-based global consumer products company Newell Rubbermaid Inc.'s $350 million senior unsecured notes due in 2017. The company intends to use the proceeds, together with available cash and short-term borrowings, to redeem its $500 million 5.5% notes due April 15, 2013. Newell Rubbermaid issued the notes under its Rule 415 shelf registration statement filed May 17, 2011. All of our existing ratings on the company, including the 'BBB-' corporate credit rating, remain unchanged. Our rating outlook is stable and the short-term corporate credit rating is 'A-3'. Pro forma for the proposed transaction, we forecast Newell Rubbermaid will have between $1.8 billion and $2 billion in reported debt outstanding through fiscal 2013. The corporate credit rating on Newell Rubbermaid reflects Standard & Poor's view that the company's business risk profile continues to be "satisfactory" and its financial risk profile remains "intermediate." Our business risk assessment reflects our expectation that the company's portfolio of well-recognized branded products will remain diverse and it will be successful with its efforts to lower its cost base. It also reflects the company's slow expansion into emerging markets and its weakening bargaining power with a consolidating retail customer base. Our financial risk assessment incorporates our forecast for financial ratios to remain near levels indicative of an "intermediate" financial risk profile, including adjusted leverage remaining between 2.7x and 3.0x, funds from operations (FFO) to debt approaching 30%, and adjusted debt to capital improving to the low-50% area. RATINGS LIST Newell Rubbermaid Inc. Corporate credit rating BBB-/Stable/A-3 New Ratings Newell Rubbermaid Inc. Senior Unsecured $350 mil notes due 2017 BBB-