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S.C. JOHNSON SENIOR DEBT LOWERED TO 'A,' CP TO 'F-1' BY FITCH -- FITCH FINANCIAL WIRE --

 S.C. JOHNSON SENIOR DEBT LOWERED TO 'A,' CP TO 'F-1' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, Oct. 28 /PRNewswire/ -- S.C. Johnson & Son, Inc.'s $25 million senior debt is lowered to "A" from "AA-," its $100 million preferred stock to "A-" from "A+," and its $250 million commercial paper program to "F-1" from "F-1+." The credit trend is stable.
 The rating action follows announcement of the company's intention to acquire The Drackett Co. from Bristol-Myers Squibb for $1.15 billion in cash. The acquisition, which will be entirely financed with bank debt, will substantially increase overall leverage and reduce coverages below their historically superior levels. However, Fitch expects that S.C. Johnson will use some combination of cash on hand and asset sales proceeds to rapidly repay a considerable amount of the acquisition debt.
 Mitigating factors include the strong operating results from S.C. Johnson's core product lines and the company's refocused efforts on cash flow and profitability throughout its organization. These core products, Raid, Glade, Edge and Pledge, have consistently delivered high profitability, cash flow and returns on invested capital. Fitch views Drackett's product lines of Windex, Vanish, and Drano as perfect complements to the existing strong consumer brands of S.C. Johnson, making Drackett a very good strategic fit for the company. Additionally, S.C. Johnson's commercial paper program funds annual inventory and receivable growth for the company's RAID and OFF! product lines. As such, the program is highly seasonal with an annual cleanup in the fall of each year.
 S.C. Johnson & Son, Inc., a privately held company founded in 1886, is a leading worldwide consumer products and specialty chemicals company. Headquartered in Racine, Wis., the company operates in 21 states and 46 foreign countries.
 -0- 10/28/92
 /CONTACT: Thomas W. Hoens of Fitch, 212-908-0569/ CO: S.C. Johnson & Son, Inc. ST: Wisconsin IN: CHM SU: RTG


GK -- NY101 -- 6119 10/28/92 14:46 EST
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Publication:PR Newswire
Date:Oct 28, 1992
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