Standard & Poor's Ratings Services has completed a review of the issue-level and recovery ratings on The Scotts Miracle-Gro Co.'s senior unsecured notes. We've lowered the issue-level rating on the notes to 'BB-' and revised the recovery rating to '6' from 'BB' and '5', respectively, on lower enterprise value due to lower earnings. Our simulated scenario contemplates a default in 2017 because of a sustained spike in commodity and energy costs coupled with the loss of major customers. We believe the company would reorganize in the event of a default. The current capital structure consists of a $1.7 billion revolver due 2016, a $325 million uncommitted account receivable program (MARP), $200 million 7.25% senior notes due 2018, and $200 million...
Companies mentioned in this report are:
- The Scotts Miracle-Gro Co.
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