S&P rates Kimberly-Clark notes A

S&P said it assigned its A issue-level rating to Kimberly-Clark Corp.'s proposed senior unsecured note issuance due 2046.

The offering will be drawn off Kimberly-Clark's Rule 415 shelf registration statement filed June 14.

Net proceeds will be used for general corporate purposes, including providing funds to retire debt.

Debt outstanding as of June 30 was about $7.7 billion.

All existing ratings on the company, including the A long-term and A-1 short-term corporate credit ratings, are unchanged.

The outlook is negative.

S&P said the ratings incorporate Kimberly-Clark’s solid market shares in North American tissue and global diapers, incontinence care and feminine care; its portfolio of well-known brand names – most of which have high consumer brand equity; the nondiscretionary demand for most of the product segments in which it competes; its good geographic diversification; solid profitability; and ongoing restructuring initiatives.

The ratings also reflect the solid competition the company faces from formidable global competitors, including Procter & Gamble Co. and Georgia-Pacific LLC, among others, the agency added.

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