S&P: Kimberly-Clark notes A

Standard & Poor's said it assigned an A senior unsecured debt rating to Kimberly-Clark Corp.'s planned $700 million senior unsecured debt issues, which consist of $250 million of 3.875% notes due 2021 and $450 million of 5.3% notes due 2041.

The A long-term and A-1 short-term corporate credit ratings on Kimberly-Clark remain unchanged.

The proceeds will be used for general corporate purposes, which includes the funding of share repurchases, S&P said. The company indicated that it plans to buy back about $1.5 billion of common stock in 2011, the agency said.

The ratings reflect its strong business profile, solid cash flow generation and an expectation that the company will maintain a modest financial risk profile, the agency said.

The agency said it believes the diversity and strength of its product portfolio should provide the company with a fairly consistent stream of earnings and cash flow, although its exposure to volatility of commodity and energy costs over the past several years remains an offsetting risk factor, S&P said.

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