Moody’s changes Newell Rubbermaid to positive

Moody's Investors Service said it revised Newell Rubbermaid, Inc.'s rating outlook to positive from stable reflecting the expectation that operating performance and credit metrics will continue to improve.

All ratings were affirmed, including the Baa3 senior unsecured rating and the Prime-3 commercial paper rating.

"We expect that Newell will continue to grow its product portfolio as it executes it strategic focus around its core brands in growth regions," Moody’s senior credit officer Kevin Cassidy said in a news release.

Moody's expects Newell's positive momentum to continue, aided by continued strength in the U.S. economy and a gradual recovery in Newell's foreign markets. The company does not have significant operations in Asia.

"We think the company's improved operating performance will enable it to prudently increase shareholder returns while still achieving strong credit metrics," Cassidy added in the release.

The agency expects Newell-Rubbermaid to moderate its shareholder returns if it were to make a sizeable debt financed acquisition until its leverage metrics return to current levels.

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