S&P: 3M unchanged

Standard & Poor's said that the announcement by 3M Co. (AA/stable/A-1+) that its board of directors has authorized a two-year, $7 billion share repurchase program would not have an impact on its ratings or outlook for 3M.

While the program is larger than prior authorizations, it is in line with the company's annual share repurchase activity over the past two years, of $3.6 billion in 2005 and $3 billion for the nine months ended Sept. 30, the agency said.

The two-year program accommodates the company's occasional need for a spike in repurchase activity, as was the case in the September 2006 quarter, when over $1 billion of shares were repurchased, S&P added.

While the company's share repurchase activity, combined with its growth objectives, may modestly exceed internally generated cash flow, the agency said it expects 3M's financial profile to remain consistent with the rating.

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