Moody's affirms Estée Lauder; outlook negative

Moody's Investors Service said it affirmed the A2 senior unsecured and Prime-1 short-term rating of Estée Lauder Cos. Inc., but changed the outlook to negative from stable.

This rating action reflects the uncertainty surrounding the company's ability to restore its credit metrics over the next 12 to 18 months to a level consistent with its A2 rating as the global recession continues to adversely impact sales and profitability of more discretionary prestige cosmetics and personal care products, the agency said.

According to the agency, the affirmation of Estée Lauder's Prime-1 short-term rating reflects the company's sizable cash holdings, still significant cash flow from operations, lack of near-term debt maturities and adequate back-up multi-year committed credit facilities to support its modestly used $750 million commercial paper program.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.