Dooce

To maintain its existing capital structure and liquidity, Newell is likely to refinance upcoming debt maturities and renew and extend its $350 securitization facility. RATING SENSITIVITIES What could trigger a positive rating action: --Given Newell's targeted leverage of 2.0x-2.2x and its product mix that is susceptible to macroeconomic shifts, Fitch does not expect ratings upside in the intermediate term. Future developments that may, individually or collectively, lead to a negative rating action include: --Top line deceleration or margin deterioration, or a deep and lengthy downturn of one or more major markets that causes FCF to decelerate meaningfully and leads to sustaining leverage above 2.5x. Newell's profitability and cash flows have historically bounced back to normal levels within 12 - 18 months after the end of previous economic downturns; --Intention of sustaining leverage well above 2.5x caused by a change in management's financial strategy or a sizeable debt-financed acquisition. Fitch has taken the following rating actions on Newell: --Long-term Issuer Default Rating (IDR) upgraded to 'BBB+' from 'BBB'; --$800 million revolving credit facility upgraded to 'BBB+' from 'BBB'; --Senior unsecured notes upgraded to 'BBB+' from 'BBB'. --Short-term IDR affirmed at 'F2'; --Commercial paper affirmed at 'F2'. The Rating Outlook is Stable.