Fitch: Kimberly-Clark notes A

Fitch Ratings said it assigned an A rating to Kimberly-Clark Corp.'s new $300 million senior notes due 2022. The company has an A long-term issuer default rating, F1 short-term issuer default rating and F1 commercial paper rating, and its revolving credit facilities and senior notes and debentures are rated A. The outlook is stable.

The proceeds of the new notes will partially refinance the $400 million of 5.625% notes due on Feb. 15, 2012.

The agency said the ratings reflect the company's ability to consistently generate at least $2.3 billion of operating cash flow and over $500 million of free cash flow annually. For the year ended Dec. 31, revenues increased 6% to $20.8 billion, and operating profit (excluding other income and restructuring charges) declined modestly by 3% to $2.8 billion as sales growth and cost savings were not enough to fully offset inflation in key input costs, Fitch said.

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