S&P lifts Kimberly-Clark view to stable

S&P said it revised the outlook on Kimberly-Clark Corp. to stable from negative and affirmed all of its ratings on the company, including its A long-term and A-1 short-term commercial-paper ratings.

The outlook revision reflects a belief that the company is willing and able to sustain adjusted debt-to-EBITDA ratio at or less than 2x because of its generally stable and predictable earnings and cash flow, S&P said.

The agency said any deterioration to higher than 2x would be temporary based on an expectation that the company would moderate its financial policies, including lower share repurchases, to quickly restore adjusted debt-to-EBITDA to less than 2x.

The ratings consider the company's solid market shares in North American tissue and global diapers, incontinence care and feminine care, S&P said.

The ratings also reflect its portfolio of well-known brand names, non-discretionary demand for most of the product segments in which it competes and its good geographic diversification, the agency said.

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