Moody’s upgrades Church & Dwight to investment grade on strong credit metrics
By APFriday, August 13, 2010
Moody’s upgrades Church & Dwight on strong metrics
NEW YORK — Moody’s Investors Service has upgraded Church & Dwight Co. Inc.’s ratings to investment grade on the company’s strong credit metrics and growth despite the tough economy.
Moody’s withdrew the company’s “Ba1″ junk corporate family rating and probability of default rating, as a result of upgrading the company to investment grade. The outlook for the maker of Arm & Hammer, Nair, Orajel, and Kaboom bathroom cleaner is stable. The upgrade affects about $800 million of rated debt.
Moody’s said it also believes the company will maintain a conservative financial policy, and cited its strong cash balance and cash flow.
Last week the company, based in Princeton, N.J., said its second-quarter net income rose 28 percent, but cautioned that its margins were hurt by heightened competition and increasing spending on promotions.
Moody’s said its sales growth was above its peers because the company has value-oriented products, which do well when consumers look to spend less money.
“Continuous investment in its portfolio of premium brands drives revenue and earnings stability, supports margin improvement and positions them well for when the economy recovers,” Moody’s said.
Church & Dwight shares slipped 5 cents to $62.01 in afternoon trading.
