Fitch Upgrades SC Johnson's IDR to 'A-'; Outlook Stable.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. has upgraded S.C. Johnson & Son, Inc (SCJ SCJ S C Johnson & Son, Inc. SCJ Super Cobra Jet (engine) SCJ Supreme Court Justice SCJ Squamocolumnar Junction SCJ Sixteenth Century Journal SCJ Congregation of the Priests of the Sacred Heart (religious order) ) as follows: --Issuer Default Rating (IDR IDR In currencies, this is the abbreviation for the Indonesian Rupiah. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. ) to 'A-' from 'BBB+'; --Senior unsecured notes to 'A-' from 'BBB+'; --Bank credit facility to 'A-' from 'BBB+'. Fitch has also affirmed SCJ's short-term debt rating at 'F2'. The Rating Outlook is Stable. The upgrade reflects SCJ's improved credit profile. The company's metrics have strengthened markedly since the fiscal 2002/2003 acquisition of Bayer's household insecticides operations. This improvement demonstrates SCJ's historic ability to integrate acquisitions effectively and repay debt. SCJ's strong market shares in several categories provide the company with stable operating profits and cash flow which has led to increasing levels of cash given much smaller acquisition activity since Bayer transaction. Sizeable acquisitions are not anticipated in the medium term. The ratings and Outlook also consider SCJ's strong brand support and overall stable market shares in an intensely competitive industry. Fitch notes that as a private company SCJ has limited access to equity capital markets. For the fiscal year ending June 30, 2006, volume and pricing had a positive impact on SCJ's revenue. Effective cost reduction activity also led to an improvement in EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become margins. Net free cash flow has improved. Debt is amortizing as scheduled and cash is continuing to build. For the first quarter ending Sept. 30, 2006 these trends continue. Barring sizeable acquisitions, credit metrics particularly on the leverage front, should continue to remain within the rating category. SCJ's key product categories include home cleaning, air care, insect control and home storage. Major brands are Glade, Oust, Pledge, Shout, Windex, Ziploc, OFF!, Drano, Raid, Edge and Skintimate. Several brands are estimated to hold number one positions on a global basis. Products are sold in over 110 countries worldwide; however, North America is the largest single market. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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