S&P affirms Energizer Holdings

S&P said it affirmed its BB corporate credit rating on Energizer Holdings Inc. The outlook is negative.

S&P also affirmed its BBB- issue-level rating on the company's $400 million senior secured term loan due 2022. The recovery rating of 1 reflects an expectation for very high (90%-100%; rounded estimate 95%) recovery in the event of a payment default.

The BB issue-level rating on Energizer's $600 million senior unsecured notes due 2025 is unchanged and remains on CreditWatch with negative implications, where S&P originally placed it on Jan. 16, 2018.

“The rating affirmation reflects our view that the company will likely close the acquisition before the end of calendar year 2018 and successfully integrate Spectrum Brands' battery and portable lighting business, strengthen EBITDA through integration synergies, and apply free cash flow to debt reduction to improve its credit protection measures over the next few years,” S&P said in a news release.

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