Aug 21 - Standard & Poor's Ratings Services said today that its ratings and outlook on
Princeton, N.J.-based Church & Dwight Co. Inc. (BBB/Positive/A-2) are not affected at
this time by the company's announcement that it has signed a definitive agreement to acquire
Vancouver, Wash.-based Avid Health Inc. for about $650 million.
Our assessment of Church & Dwight's financial risk as "intermediate" (as we describe the
term in our criteria) incorporates our assumption that the company's 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.