Moody's could cut Energizer

Moody's Investors Service said it placed Energizer Holdings, Inc.'s Baa3 senior unsecured ratings on review for downgrade following the company's announcement that its board of directors authorized management to pursue a split-up of the company's household products and personal care divisions.

The review reflects the negative effects that a reduction in scale, business diversity and cash flow would have on the company's operating profile. Moody's said it also believes that the split-up is a move that favors shareholders over bondholders and is concerned that the willingness to pursue a split-up represents an aggressive financial approach that may no longer warrant an investment-grade rating.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.