Moody's to review Black & Decker ratings

NEW YORK - Moody's Investors Service said Tuesday it has placed some of Black & Decker Corp.'s ratings under review for possible downgrade, affecting about $1.5 billion worth of the toolmaker's debt.

Moody's said the potential downgrade is linked to the continued slump in consumer and industrial demand for the company's power tools, hardware and fastening systems.

Household demand for those products remains weak amid the housing market downturn, Moody's said. Meanwhile, industrial demand for tools, which had held up reasonably well through most of 2008 is facing a plunge due to declining construction and manufacturing activity.

Moody's said it will look at the company's ability to manage through the risky time and its ability to maintain a healthy cash position through a range of economic scenarios. The review would likely result in no more than a one notch rating change, leaving the company's "Baa2" senior unsecured rating in investment-grade territory.

Moody's last rating action on Black & Decker occurred on March 27 when the outlook was revised to stable from positive.

Black & Decker shares fell $1.22, or 4 percent, to close earlier at $28.37.

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