S&P gives Clorox notes A-

S&P said it assigned its A- issue-level rating to Clorox Co.'s proposed $500 million senior notes due 2028.

Proceeds are expected to be used to repay commercial paper borrowings that funded its recent acquisition of Nutranext.

All of the existing ratings, including the A- corporate credit rating and A-2 short-term rating, are unchanged.

The outlook remains stable.

“We forecast Clorox's credit ratios will remain close to current levels, including leverage about 2x and funds from operations to total debt above 35% in fiscal 2018,” the agency said in a news release.

“We assume the company will maintain its relatively conservative financial policy, which includes our expectation that it will use free cash flow for bolt-on acquisitions and shareholder payments, and that debt-financed transactions will be moderate.”

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