Moody's rates Kimberly Clark notes A2

Moody's Investors Service said it assigned an A2 rating to Kimberly-Clark Corp. proposed offering of $250 million of senior unsecured notes due 2020.

The outlook is stable.

The company's A2 rating reflects its strong market position in non-cyclical paper, health and hygiene-related consumer products, the agency said.

Better cost management, focused working capital improvements and conservative financial policies have bolstered the company's profitability and credit metrics, the agency noted.

These positive factors are tempered by the company's somewhat limited product category diversity, ongoing challenges from competitors, a concentration of sales and profits within the developed markets, and costs associated with an underfunded pension plan, Moody's said.

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