S&P: Kimberly-Clark on watch

Standard & Poor's said it placed all of its ratings on Kimberly-Clark Corp., including the A+ corporate credit and A-1 short-term commercial paper ratings, on CreditWatch with negative implications.

According to the agency, the CreditWatch listing is based on the company's recent announcement that it has significantly lowered its earnings guidance for the remainder of fiscal 2008 because of continued increases in commodity costs.

While Kimberly-Clark continues to take price increases and reduce costs to help offset the impact, its EBITDA margins have weakened below 20% from the mid-20% area over the past several years, the agency noted.

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