Fitch rates Clorox notes BBB+

Fitch Ratings said it assigned a BBB+ rating to Clorox Co.'s $600 million of new 10-year senior notes. The company has a BBB+ issuer default rating and an F2 short-term issuer default rating, and the agency rates its bank credit facility at BBB+. The outlook is stable.

Proceeds will be used to pay down outstanding commercial paper balances and to refinance the $350 million 5.45% senior notes due in October 2012.

The agency said Clorox's ratings and outlook are predicated on its low business risk, big-share brands in mid-sized categories, strong credit protection measures and ample liquidity.

More than 75% of Clorox's revenues are generated in the United States where it competes in mature slow-growth categories, Fitch noted. Thus, absent acquisitions, Clorox's revenue growth has been in the low- to mid-single-digit range, according to the agency.

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