Printer Friendly

NEWELL COMPANY COMMERCIAL PAPER PROGRAM RATED DUFF 1 BY DUFF & PHELPS

 CHICAGO, Dec. 9 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a Duff 1 credit rating to Newell Company's new commercial paper program, which is authorized up to $400 million. Concurrently, D&P affirmed its long-term credit rating of "A" (Single-A) on Newell's senior unsecured debt.
 The D&P ratings reflect Newell's strong cash flow from operations, its ample balance sheet flexibility and liquidity, and the successful track record of its acquisition strategy. The company's revenue stream is relatively stable and diversified with its position as a major supplier of staple houseware, hardware and office products serving high- volume retailers such as Wal-Mart, Home Depot, Ace Hardware, and Office Depot. Combined with management's focus on efficient manufacturing and distribution, operations generate more than enough cash to fund on-going operations and internal sales growth.
 Newell's strategy includes significant external growth via acquisitions. Management's ability to quickly integrate acquisitions, combined with the strong excess cash flow from operations, allows the company to quickly pay down acquisition debt and maintain firm control over balance sheet leverage. Newell's fixed obligation ratio has increased less than 5 points in 1993, to 32.4 percent at the end of its third quarter, despite several recent acquisitions which are expected to add more than $500 million to its sales on an annualized basis. Given the company's free cash flow, D&P expects the fixed obligation ratio could quickly be pushed below 30 percent in the absence of new acquisitions.
 D&P's short-term rating of Newell's commercial paper program further reflects the company's good liquidity. The program will likely be used to fund small and medium-sized acquisitions and is supported by committed lines of credit, cash balances, and shelf debt.
 -0- 12/9/93
 /CONTACT: Matthew D. Robbins, CFA, of Duff & Phelps Credit Rating Co., 312-368-3120/
 (NWL)


CO: Newell Company ST: Illinois IN: SU: RTG

LG -- NY053 -- 2235 12/09/93 13:14 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Dec 9, 1993
Words:316
Previous Article:BANK OF NEW YORK: MUNICIPAL BONDS IN 1994 -- A SQUEEZE ON SUPPLY
Next Article:SHEFFIELD MEDICAL TECHNOLOGIES DIRECTORS ELECTED

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters