Moody’s assigns A1 to Estee Lauder notes

Moody’s Investors Service said it assigned an A1 rating to senior unsecured notes being offered by the Estee Lauder Cos. Inc.

“The company’s conservative financial policies support strong credit metrics with good cash flow generated from its geographically diverse portfolio. Further, the company’s multi-year reorganization plan will deliver additional cash flow, while improving financial and operating flexibility. Moody’s expects this flexibility, coupled with Estee Lauder’s distribution capabilities and strong track record of innovation, to continue to drive revenue growth at or above the industry average,” said Moody’s in a press release.

Proceeds will be used to finance the recently announced acquisition of Have & Be Co. Ltd, for general corporate purposes and to refinance the $500 million of 1.8% senior notes that come due on Feb. 7.

The fixed-rate notes will be due in 2024, 2029 and 2049.

The outlook is stable.

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