Fitch upgraded Stanley Black & Decker Inc.'s short-term issuer default rating to F1 from F2 due to the company's strong financial flexibility and operating conditions.
Stanley Black & Decker has maintained relatively stable margins and credit metrics despite some regional and end-market downturns with the help of its product, geographic and end-market diversity, according to Fitch.
Fitch expects the company's credit metric stability to continue in the next few years, with a debt-to-EBITDA ratio of between 1.6x and 1.9x. Free cash flow from operations, excluding capital expenditures and dividends, is projected to be 3.5%-4.5% of revenue over the next few years.
Fitch also affirmed the company's long-term issuer default rating at A-. The rating outlook is stable.
