Recovery Report: Scotts Miracle-Gro Co.'s Recovery Rating Profile Jan 13
Standard & Poors, January 2013
Abstract
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.
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis
- The Scotts Miracle-Gro Co.
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