Moody's affirms Clorox

Moody's Investors Service said it affirmed Clorox Co.'s Baa2 long-term and Prime-2 short-term ratings and revised the outlook to positive from stable.

The revision reflects sustained improvements in credit metrics, demonstrated resiliency of the company's product portfolio in the last 12 months and expectation that financial policies will remain conservative, according to the agency.

"Clorox has performed well during the recession despite its relatively high exposure to the U.S. market as a result of its strong and well diversified brand portfolio," Moody's vice president Janice Hofferber said in a statement.

Clorox's Baa2 senior unsecured rating reflects the company's leading market positions in most of its midsized product categories, strong brand name recognition, product innovation and steady revenue growth, the agency said.

These factors are tempered by the proliferation of new products with their inherent marketing and trade promotion requirements, the ongoing intense competition for global market share growth, somewhat limited diversity of sales in terms of geography and retail customer, potential for volatility in its Latin American segment, and exposure to volatile raw material and energy prices, the agency noted.

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