S&P gives 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 in 2028.

The agency said it expects the company to use the net proceeds from the leverage-neutral issuance for general corporate purposes, including debt repayment.

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

The outlook is stable.

“Our ratings on Kimberly-Clark incorporate the following factors: its solid market shares in North American tissue, 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 the company competes; its good geographic diversification; its solid profitability; and its ongoing cost-saving initiatives,” the agency said in a news release.

“The ratings also reflect the solid competition that Kimberly-Clark faces from formidable global competitors including Procter & Gamble Co. and Georgia-Pacific LLC.”

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