S&P stabilizes Kimberly-Clark view

S&P said it changed its outlook for Kimberly-Clark Corp. to stable from negative and affirmed the A ratings on the company and its senior unsecured notes.

“Kimberly-Clark has improved credit ratios, including reducing adjusted leverage to about 2x as of June 30, 2023, below our downgrade threshold. The substantial performance deterioration in 2021 and part of 2022 resulted from record input cost inflation, supply chain difficulties, and tough macroeconomic conditions. We estimate S&P Global Ratings-adjusted EBITDA has rebounded about 20% from the trough in mid-2022 primarily because of price increases, ongoing productivity improvements, decelerating supply chain headwinds, and reduced input costs,” the agency said in a press release.

Additionally, S&P said it expects modest improvements in profitability that will lead adjusted debt in the high-1x range.

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