S&P cuts 3M

S&P said it downgraded 3M Co. ratings, including its issuer credit rating to A+ from AA-. The outlook is negative.

“The downgrade and negative outlook reflect continued pressure from 3M's underperforming end markets, which we believe could continue into 2020, leading to credit metrics (already stretched for the rating) that are weaker than we originally anticipated. The company's acquisition of Acelity, the largest in its history, in late 2019 was primarily debt-funded and adds further pressure to the metrics,” said S&P in a press release.

Moreover, potential perfluoroalkoxy alkanes liabilities remain an overhang to the rating. “We have not quantified potential reserves or settlements, but adverse events could significantly weaken the company's already stretched credit metrics,” the agency said.

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