Moody's may cut Clorox

Moody's Investors Service said it placed the A3 senior unsecured rating of the Clorox Co. under review for downgrade and affirmed the company's Prime-2 short-term rating.

The review is prompted by the company's announcement that it entered an accelerated share repurchase agreement for $750 million of its common stock, according to the agency.

The review will focus on the impact of the share repurchase program and overall more aggressive financial policy and the likelihood of Clorox maintaining debt protection measures, the agency said. Any downgrade of its long-term debt rating is unlikely to exceed one notch, Moody's said.

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