Reuters logo
TEXT-S&P:Church & Dwight's acqstn plans don't affect rtgs
August 21, 2012 / 1:16 PM / in 5 years

TEXT-S&P:Church & Dwight's acqstn plans don't affect rtgs

Aug 21 - Standard & Poor’s Ratings Services said today that its ratings and outlook on Princeton, N.J.-based Church & Dwight Co. Inc. (BBB/Positive/A-2) are not affected at this time by the company’s announcement that it has signed a definitive agreement to acquire Vancouver, Wash.-based Avid Health Inc. for about $650 million.

Our assessment of Church & Dwight’s financial risk as “intermediate” (as we describe the term in our criteria) incorporates our assumption that the company’s credit ratios will weaken over time--most likely due to debt-financed acquisitions--including total leverage in the low-2x area and funds from operations (FFO) to total debt in the 35% to 40% range. Pro forma for this debt-financed acquisition, we estimate leverage and FFO to total debt of about 1.6x and 45%-50%, respectively, levels which are consistent with our “modest” financial risk descriptor.

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below