Jun. 16 at 11:01 PM
S&P Global Ratings upgraded The Scotts Miracle-Gro's credit rating to BB- from B+, citing stronger operating performance, improved credit metrics, EBITDA growth, the Hawthorne divestiture, and solid free cash flow generation. The agency also raised the issuer-level rating on Scotts' senior unsecured notes to B+ from B- and revised the recovery rating to 5.
S&P expects Scotts to reduce adjusted leverage to 3.7x by Sept. 30, 2026, supported by debt reduction efforts and an internal leverage target of 3.0x-3.5x. Adjusted EBITDA rose 13% to
$704 million over the 12 months ended March 28, 2026, driven by a favorable product mix, supply-chain savings, and strong U.S. branded consumer sales. However, EBITDA is projected to ease to around
$691 million by year-end due to higher input costs and softer second-half sales trends. Free operating cash flow is forecast at approximately
$275 million in 2026.
$SMG