2008-07-14 23:45:12 -

- Following today's announcement that Spectrum Brands (Spectrum) and Salton Inc has mutually agreed to terminate the definitive agreement for the sale of the Company's global pet supply business, Fitch Ratings takes no action on Spectrum. Fitch rates Spectrum as follows:

--Issuer Default Rating (IDR) 'CCC';

--$1 billion term loan B 'B/RR1'

--$225 million ABL 'B/RR1'

--EUR350 million term loan 'B/RR1'

--$700 million 7.4% senior sub note, 'CCC-/RR5'

--$2.9 million 8.5% senior sub note, 'CCC-/RR5'

--$347 million 11.25% variable rate toggle senior sub note, 'CCC-/RR5'

The Rating Outlook is Negative.

Fitch views the termination as basically credit neutral. The pet food segment represented approximately a third of Spectrum's EBITDA before corporate overhead and is a steady year-round performer which improves the company's earning quality. Furthermore, Fitch has noted earlier that while debt balances would have declined with the segment's sale, credit metrics on a pro-forma basis were only marginally improved. In the near-term Spectrum has enough liquidity to operate its business and service its debt.

Fitch will continue reviewing Spectrum's performance going forward to gain a better understanding of the company, given that it remains focused on improving its capital structure.

Spectrum is a global branded consumer products company with operations in seven product categories: consumer batteries; lawn and garden; pet supplies; electric shaving and grooming; household insect control; electric personal care products; and portable lighting.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.

Fitch Ratings, New York
Grace Barnett, CPA, 212-908-0718
Thomas P. Razukas, CFA, 212-908-0223
or
Media Relations:
Brian Bertsch, 212-908-0549