Moody's Downgrades Stanley Works

The company's security business may prove more resilient, the agency said, but "it too may face diminished new installation demand driven by slowing commercial construction."

Moody's said Stanley Works' adjusted debt burden has nearly doubled over the past five years as it aggressively grew through acquisitions and repurchased shares. At the same time, its revenues grew by about 50 percent, the agency said.

While that growth strategy diversified the company's business lines and geographic reach, it also left Stanley Works' rating vulnerable in the current downturn, according to Moody's.

Shares of Stanley Works rose 57 cents to $31.80 in afternoon trading.