<PAGE>
 
                                                                 EXHIBIT 10.1.30

 



                       AMENDMENT AND WAIVER NO. 4 TO THE
                                CREDIT AGREEMENT


                                    Dated as of December 31, 1998

          AMENDMENT AND WAIVER NO. 4 TO THE CREDIT AGREEMENT among Scovill
Holdings Inc., a Delaware corporation (the "Parent"), Scovill Fasteners Inc., a
                                            ------                             
Delaware corporation (the "Borrower"), PCI Group, Inc., a Delaware corporation
                           --------                                           
("PCI"), Rau Fastener Company, LLC, a Delaware limited liability company
  ---                                                                   
("Rau"), Scomex, Inc., a Delaware corporation ("Scomex"), the banks, financial
  ---                                           ------                        
institutions and other institutional lenders party to the Credit Agreement
referred to below (collectively, the "Banks") and Credit Agricole Indosuez, as
                                      -----                                   
administrative agent and collateral agent (the "Administrative Agent").
                                                --------------------   

          PRELIMINARY STATEMENTS:

          (1) The Parent, the Borrower, PCI, Rau, Scomex, the Banks, the
Administrative Agent, Swiss Bank Corporation, Stamford Branch, as documentation
agent and syndication agent, and SBC Warburg Dillon Read Inc., as advisor and
arranger, have entered into a Credit Agreement dated as of November 26, 1997,
and amendments thereto dated as of January 9, 1998, February 20, 1998 and
September 30, 1998 (such Credit Agreement, as so amended, being the "Credit
                                                                     ------
Agreement").  Capitalized terms not otherwise defined in this Amendment and
---------                                                                  
Waiver have the same meanings as specified in the Credit Agreement.

          (2) The Borrower has requested that (i) the requirements of Section
10.10 (Funded Indebtedness to Consolidated EBITDA ratio) for the accounting
period ending on December 31, 1998 be waived, (ii) the requirements of Section
10.08 (Capital Expenditures) be waived for the fiscal year ended on December 31,
1998, (iii) the Fixed Charge Coverage Ratio and the Funded Indebtedness to
Consolidated EBITDA ratio levels set forth in Sections 10.09 and 10.10,
respectively, of the Credit Agreement be amended and (iv) the minimum net worth
level set forth in Section 10.20 of the Credit Agreement be amended.

          (3) The Required Banks are, on the terms and conditions stated below,
willing to grant the request of the Borrower as hereinafter set forth.

          SECTION 1.  Amendments to Credit Agreement.  The Credit Agreement is,
                      ------------------------------                           
effective as of the date hereof and subject to the satisfaction of the
conditions precedent set forth in Section 3, hereby amended as follows:

     (a) The definition of "Applicable Margin" in Section 1.01 is amended in
full to read as follows:

     "'Applicable Margin' shall mean a percentage per annum equal to (i) in the
       -----------------                                                       
case of Term Loans and Revolving Loans that are maintained as Base Rate Loans,
2.00% and (ii) in the case of Term Loans and Revolving Loans that are maintained
as Eurodollar Loans, 3.00%."

     (b) Section 10.09 is amended in full to read as follows:
<PAGE>
 
     "10.09  Fixed Charge Coverage Ratio.  The Borrower shall not permit the
             ---------------------------                                    
Fixed Charge Coverage Ratio for any period of four consecutive fiscal quarters
of the Borrower, in each case taken as one accounting period, ended on a date
set forth below to be less than the ratio set forth opposite such date:

                                 
              Fiscal Quarter        |
                  Ended             |       Ratio
         ---------------------------|--------------
                                    |
          March 31, 1998            |       1.1:1.0
         ---------------------------|--------------
          June 30, 1998             |       1.1:1.0
         ---------------------------|--------------
          September 30, 1998        |       1.1:1.0
         ---------------------------|--------------
          December 31, 1998         |       1.1:1.0
         ---------------------------|--------------
          March 31, 1999            |       1.0:1.0
         ---------------------------|--------------
          June 30, 1999             |       1.0:1.0
         ---------------------------|--------------
          September 30, 1999        |       1.0:1.0
         ---------------------------|--------------
          December 31, 1999         |       1.0:1.0
         ---------------------------|--------------
          March 31, 2000            |       1.0:1.0
         ---------------------------|--------------
          June 30, 2000             |       1.0:1.0
         ---------------------------|--------------
          September 30, 2000        |       1.0:1.0
         ---------------------------|--------------
          December 31, 2000         |       1.0:1.0
         ---------------------------|--------------
          March 31, 2001            |       1.1:1.0
         ---------------------------|--------------
          June 30, 2001             |       1.1:1.0
         ---------------------------|--------------
          September 30, 2001        |       1.1:1.0
         ---------------------------|--------------
          December 31, 2001         |       1.1:1.0
         ---------------------------|--------------
          March 31, 2002            |  
         ---------------------------|--------------
          and each fiscal quarter   | 
          thereafter"               |      1.15:1.0
         ---------------------------|--------------

                                    
     (c) Section 10.10 is amended in full to read as follows:

               "10.10  Funded Indebtedness to Consolidated EBITDA.  The
                       ------------------------------------------      
         Borrower shall not permit the ratio of Funded Indebtedness
         (measured as of the applicable date listed below in this Section
         10.10) of the Borrower and its Subsidiaries on a consolidated
         basis to Consolidated EBITDA of the Borrower for any period of
         four consecutive fiscal quarters of the Borrower, in each case
         taken as one accounting period, ending on a date set forth below
         to be greater than the ratio set forth opposite such date below:



              Fiscal Quarter        |
                  Ended             |      Ratio
          --------------------------|--------------
                                    |     
          March 31, 1998            |      6.50:1.0
          --------------------------|--------------
          June 30, 1998             |      6.50:1.0
          --------------------------|--------------
          September 30, 1998        |      6.50:1.0
          --------------------------|--------------
          December 31, 1998         |      6.50:1.0
          --------------------------|--------------
          March 31, 1999            |      7.50:1.0
          --------------------------|--------------
          June 30, 1999             |      7.50:1.0
          --------------------------|--------------
          September 30, 1999        |      7.00:1.0
          --------------------------|--------------
          December 31, 1999         |      6.75:1.0
          --------------------------|--------------
          March 31, 2000            |      6.40:1.0
          --------------------------|--------------

                                       2
<PAGE>
 
          June 30, 2000             |      6.15:1.0
          --------------------------|--------------
          September 30, 2000        |      6.00:1.0
          --------------------------|--------------
          December 31, 2000         |      5.75:1.0
          --------------------------|--------------
          March 31, 2001            |      5.50:1.0
          --------------------------|--------------
          June 30, 2001             |      5.50:1.0
          --------------------------|--------------
          September 30, 2001        |      5.50:1.0
          --------------------------|--------------
          December 31, 2001         |      5.50:1.0
          --------------------------|--------------
          March 31, 2002            |      5.00:1.0
          --------------------------|--------------
          June 30, 2002             |      5.00:1.0
          --------------------------|--------------
          September 30, 2002        |      5.00:1.0
          --------------------------|--------------
          December 31, 2002         |      5.00:1.0
          --------------------------|--------------
          March 31, 2003            |      4.50:1.0
          --------------------------|--------------
          June 30, 2003             |      4.50:1.0
          --------------------------|--------------
          September 30, 2003        |      4.50:1.0"
          and each fiscal quarter   |
          thereafter                |

                                    
          (d)  Section 10.20 is amended in full to read as follows:

               "10.20  Minimum Net Worth.  The Borrower shall maintain at all
                       -----------------                                     
          times an excess of consolidated total assets over consolidated total
          liabilities (excluding any amount otherwise included in consolidated
          total liabilities as a result of accrued but unpaid scheduled
          Dividends), in each case, of the Borrower and its Subsidiaries of not
          less than $20,000,000."

          SECTION 2.  Waivers.  The Required Banks hereby agree to waive the
                      -------                                               
          following:
 
          (a)  The requirements of Section 10.10 of the Credit Agreement solely
          for the accounting period, consisting of four consecutive fiscal
          quarters of the Borrower, ending on December 31, 1998.
 
          (b)  The requirements of Section 10.08 of the Credit Agreement solely
          for the fiscal year ended December 31, 1998.

          SECTION 3.  Conditions of Effectiveness.  This Amendment and Waiver
                      ---------------------------                            
shall become effective as of the date first above written when, and only when
(i) the Administrative Agent shall have received counterparts of this Amendment
and Waiver executed by the Borrower, the other Credit Parties and the Required
Banks or, as to any of the Banks, advice satisfactory to the Administrative
Agent that such Bank has executed this Amendment and Waiver and (ii) the
Administrative Agent shall have additionally received all of the following
documents, each such document (unless otherwise specified) dated the date of
receipt thereof by the Administrative Agent (unless otherwise specified), in
form and substance satisfactory to the Administrative Agent (unless otherwise
specified), and in sufficient copies for each Bank:

          (a) Certified copies of (i) the resolutions of the Board of Directors
     of (A) each Credit Party approving this Amendment and Waiver and (ii) all
     documents evidencing other necessary corporate action and governmental
     approvals, if any, with respect to this Amendment and Waiver.

          (b) A certificate of the Secretary or an Assistant Secretary of each
     Credit Party certifying the names and true signatures such Credit Party
     authorized to sign this Amendment and Waiver.

                                       3
<PAGE>
 
          (c) A certificate signed by a duly authorized officer of the Borrower
          stating that:

                    (i) The representations and warranties contained in Section
     4 are correct on and as of the date of such certificate as though made
     on and as of such date other than any such representations or
     warranties that, by their terms, refer to a date other than the date
     of such certificate; and

                    (ii) No event has occurred and is continuing that
     constitutes a Default.

          (d) Detailed consolidated financial projections for the fiscal years
          ending December 31, 1999, December 31, 2000 and December 31, 2001.

This Amendment and Waiver is subject to the provisions of Section 15.10 of the
Credit Agreement.

          SECTION 4.  Representations and Warranties of the Credit Parties.
                      ----------------------------------------------------  
Each Credit Party represents and warrants as follows:

          (a)   Corporate Status.  Each of the Parent and its Subsidiaries (i)
                ----------------                                              
     is a duly organized and validly existing corporation or limited liability
     company in good standing under the laws of the jurisdiction of its
     incorporation or organization, (ii) has the corporate or other power and
     authority to own its property and assets and to transact the business in
     which it is engaged and presently proposes to engage and (iii) is duly
     qualified and is authorized to do business and is in good standing in each
     jurisdiction where the ownership, leasing or operation of property or the
     conduct of its business requires such qualifications, except for failures
     to be so qualified which, in the aggregate, would not be reasonably likely
     to have a material adverse effect on the performance, business, assets,
     nature of assets, liabilities, operations, properties, condition (financial
     or otherwise) or prospects of the Borrower and its Subsidiaries taken as a
     whole.

          (b)   Corporate Power and Authority.  Each of the Parent and its
                -----------------------------                             
     Subsidiaries has the power to execute, deliver and perform the terms and
     provisions of this Amendment and Waiver and the Credit Agreement as amended
     by this Amendment and Waiver (collectively, the "Documents") and has taken
                                                      ---------                
     all necessary corporate or other action to authorize the execution,
     delivery and performance by it of each of such Documents.  Each of the
     Parent and its Subsidiaries has duly executed and delivered each of the
     Documents to which it is party, and each of such Documents constitutes the
     legal, valid and binding obligation of such party enforceable in accordance
     with its terms, except as the enforceability thereof may be limited by
     bankruptcy, insolvency, reorganization, moratorium or similar laws relating
     to or limiting creditors' rights generally or by general equitable
     principles (regardless of whether the issue of enforceability is considered
     in a proceeding in equity or at law).

          (c)   No Violation.  Neither the execution, delivery or performance by
                ------------                                                    
     the Parent or any of its Subsidiaries of the Documents to which it is a
     party, nor compliance by it with the terms and provisions hereof or
     thereof, (i) will contravene any provision of any applicable law, statute,
     rule or regulation or any order, writ, judgment, injunction or decree of
     any court or governmental instrumentality, (ii) will conflict with or
     result in any breach of any of the terms, covenants, conditions or
     provisions of, or constitute a default or event of default under, or result
     in the creation or imposition of (or the obligation to create or impose),
     any Lien (except pursuant to the Security Documents) upon any of the
     property or assets of the Parent or any of its Subsidiaries pursuant to the
     terms of any indenture, mortgage, deed of trust, credit agreement or loan
     agreement, or any other agreement, contract or instrument to which the
     Parent or any of its Subsidiaries is a party or by which it or any of its
     property or assets is bound, or to which it may be subject or (iii) will
     violate 

                                       4
<PAGE>
 
     any provision of the Certificate of Incorporation or By-Laws (or similar
     organizational documents) of the Parent or any of its Subsidiaries.

          (d)   Governmental Approvals.  No order, consent, approval, license,
                ----------------------                                        
     authorization or validation of, or filing, recording or registration with
     (except as has been obtained or made on or prior to the Initial Borrowing
     Date and as is in full force and effect), or exemption by, any governmental
     or public body or authority, or any subdivision thereof, is required to
     authorize, or is required in connection with, (i) the execution, delivery
     and performance of any Document or  (ii) the legality, validity, binding
     effect or enforceability of any such Document.

          (e)   Litigation.  Other than with respect to matters set forth on
                ----------                                                  
     Schedule VIII to the Credit Agreement, there are no actions, suits or
     proceedings pending or, to the best knowledge of the Borrower or any of its
     Subsidiaries, threatened that (a) would have a material adverse effect on
     the operations or financial condition of the Parent and the Borrower
     together with their respective Subsidiaries, taken as a whole, or (b)
     involves a reasonable possibility of (i) a material adverse effect on (x)
     the ability of any of the Credit Parties to perform their respective
     obligations hereunder or under any of the Credit Documents or (y) the
     rights, remedies and benefits available to the Agents, the Issuing Bank and
     the Banks hereunder or under any of the Credit Documents, or (c) would be
     materially inconsistent with the assumptions underlying the forecasts
     previously provided to the Agents, the Issuing Bank and the Banks.

          (f)   The Security Documents.  (i)  The provisions of the Security
                ----------------------                                      
     Agreement are effective to create in favor of the Collateral Agent for the
     benefit of the Secured Creditors a legal, valid and enforceable security
     interest in all right, title and interest of the respective Credit Parties
     in the Collateral described therein, and the Collateral Agent, for the
     benefit of the Secured Creditors, in the case of the Credit Parties, has, a
     fully perfected first Lien on, and security interest in, all right, title
     and interest of the respective Credit Parties, in all of the Collateral
     described therein, subject to no other Liens other than Permitted Liens.

                    (ii) The recordation of the Security Agreement in the United
          States Patent and Trademark Office, together with filings on Form UCC-
          1 in all applicable jurisdictions made pursuant to the Security
          Agreement, is effective, under federal and state law, to perfect the
          security interest granted to the Collateral Agent in the Trademarks
          and Patents covered by the Security Agreement and the filing of the
          Security Agreement with the United States Copyright Office, together
          with filings on Form UCC-1 made pursuant to the Security Agreement is
          effective under federal and state law to perfect the security interest
          granted to the Collateral Agent in the Copyrights covered by the
          Security Agreement.  Each of the Credit Parties party to the Security
          Agreement has good and merchantable title to all Collateral described
          therein, free and clear of all Liens except those described above in
          subsection (i) of this Section 3(f) and in this subsection (ii).

                    (iii)  From and after the Initial Borrowing Date, the
          Mortgages create, as security for the obligations purported to be
          secured thereby, a valid, enforceable and perfected security interest
          in and Lien on all of the Mortgaged Properties in favor of the
          Collateral Agent (or such other trustee as may be required or
          desirable under local law) for the benefit of the Secured Creditors,
          superior to and prior to the rights of all third persons (except that
          the security interest created in the Mortgaged Properties may be
          subject to the Permitted Encumbrances related thereto) and subject to
          no other Liens (other than Permitted Liens).  Each of the Borrower and
          its Subsidiaries has good and marketable title at the time of the
          grant thereof and at all times thereafter to all Mortgaged Properties,
          free and clear of all Liens except those described in the first
          sentence of this subsection (iii).

                                       5
<PAGE>
 
          SECTION 5.  Further Actions Subsequent to the Effectiveness of
                      --------------------------------------------------
Amendment and Waiver. The Borrower hereby agrees that at any time and from time
--------------------                                                           
to time to the extent that the Required Banks or any of the Agents request in
order to fulfill the requirements of any applicable statute, regulation or order
of any governmental body, to preserve, protect, enforce or realize upon the
security interests granted to the Secured Creditors pursuant to the Security
Documents, each Credit Party shall, and shall cause each of its Subsidiaries to,
cooperate with and promptly take all actions necessary to assist the Banks, the
Issuing Bank and the Agents, including, without limitation, to make, execute,
acknowledge, file and/or deliver to the Banks, the Issuing Bank or the Agents,
as the case may be, such information, documents, certificates, reports and other
assurances or instruments, which the Banks, the Issuing Bank or the Agents, as
the case may be, deems appropriate or advisable to comply with such statutes,
regulations or orders so as to preserve, protect, enforce or realize upon such
security interests granted to the Secured Creditors.

          SECTION 6.  Reference to and Effect on the Credit Documents.  (a)  On
                      -----------------------------------------------          
and after the effectiveness of this Amendment and Waiver, each reference in the
Credit Agreement to "this Agreement", "hereunder", "hereof" or words of like
import referring to the Credit Agreement, and each reference in the Notes and
each of the other Credit Documents to "the Credit Agreement", "thereunder",
"thereof" or words of like import referring to the Credit Agreement, shall mean
and be a reference to the Credit Agreement, as amended by this Amendment and
Waiver.

          (b) The Credit Agreement, as specifically amended by this Amendment
and Waiver, is and shall continue to be in full force and effect and is hereby
in all respects ratified and confirmed.  Without limiting the generality of the
foregoing, the Security Documents and all of the Collateral described therein do
and shall continue to secure the payment of all Obligations of the Credit
Parties under the Credit Documents, in each case as amended by this Amendment
and Waiver.

          (c) The execution, delivery and effectiveness of this Amendment and
Waiver shall not, except as expressly provided herein, operate as a waiver of
any right, power or remedy of any Bank or any Agent under any of the Loan
Documents, nor constitute a waiver of any provision of any of the Loan
Documents.

          SECTION 7.  Costs and Expenses.  Each of the Parent and the Borrower
                      ------------------                                      
jointly and severally agree to pay on demand all costs and expenses of the
Agents in connection with the preparation, execution, delivery and
administration, modification and amendment of this Amendment and Waiver and the
other instruments and documents to be delivered hereunder (including, without
limitation, the reasonable fees and expenses of counsel for the Agents) in
accordance with the terms of Section 15.01 of the Credit Agreement.

          SECTION 8.  Execution in Counterparts.  This Amendment and Waiver may
                      -------------------------                                
be executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute but one and the same
agreement.  Delivery of an executed counterpart of a signature page to this
Amendment and Waiver by telecopier shall be effective as delivery of a manually
executed counterpart of this Amendment and Waiver.

          SECTION 9.  Governing Law.  This Amendment and Waiver shall be
                      -------------                                     
governed by, and construed in accordance with, the laws of the State of New
York.

                                       6
<PAGE>
 
     IN WITNESS WHEREOF, the parties hereto have caused this Amendment and
Waiver to be executed by their respective officers thereunto duly authorized, as
of the date first above written.


                                    SCOVILL HOLDINGS INC.

                                    /s/  Martin A. Moore
                                         executive vice president
                                         chief financial officer


                                    SCOVILL FASTENERS INC.

                                    /s/  Martin A. Moore
                                         executive vice president
                                         chief financial officer
 
                                    PCI GROUP, INC.

                                    /s/  Martin A. Moore
                                         Secretary


                                    RAU FASTENER COMPANY, LLC

                                    /s/  Martin A. Moore
                                         Secretary


                                    SCOMEX, INC.

                                    /s/  Martin A. Moore
                                         Secretary



 

                                       7
<PAGE>
 
                                    CREDIT AGRICOLE INDOSUEZ
                                    as Administrative Agent and as a Bank

                                    /s/  MICHAEL AROUGHETI
                                         VICE PRESIDENT
 
                                    /s/  PATRICIA FRANKEL
                                         FIRST VICE PRESIDENT

                                    INDOSUEZ CAPITAL FUNDING IV, L.P.
                                    By: INDOSUEZ CAPITAL, as Portfolio
                                    Advisor

                                    /s/  DAN H. SMITH
                                         MANAGING DIRECTOR

                                    UBS AG, Stamford Branch

                                    /s/  DENISE  M. CLERKIN
                                         ASSOCIATE DIRECTOR
                                         LOAN PORTFOLIO, US

                                    /s/  THOMAS R. SALAZANO
                                         ASSOCIATE DIRECTOR
                                         LOAN PORTFOLIO, US

                                    PILGRIM AMERICA PRIME RATE TRUST
                                    By: PILGRIM AMERICA INVESTMENTS,
                                        INC., as its Investment Manager

                                    /s/  MICHAEL PRINCE, CFA
                                         VICE PRESIDENT

                                    IBJ WHITEHALL BANK & TRUST COMPANY (Formerly
                                    known as IBJ Schroder Bank & Trust
                                    Company)

                                    /s/  JEFFREY M. GOODRICH
                                         DIRECTOR


                                    SUMMIT BANK

                                    /s/  NANCY Z. REIMANN
                                         VICE PRESIDENT

                                    FLEET BUSINESS CREDIT CORPORATION

                                    /s/  BRYAN M. CORSINI
                                         SENIOR VICE PRESIDENT

                                       8