S&P assigns Kimberly-Clark notes A

S&P said it assigned its A issue-level rating to Kimberly-Clark Corp.'s proposed senior unsecured notes due 2050. The company will draw the offering from its Rule 415 shelf registration statement filed on Feb. 7, 2019.

“We expect the company to use the net proceeds from the leverage-neutral issuance for general corporate purposes, including to repay its outstanding commercial paper,” said S&P in a press release. Kimberly-Clark had about $7.7 billion of debt outstanding as of Dec. 31. All of S&P’s ratings on the company remain unchanged.

“Our ratings on Kimberly-Clark incorporate 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; and its good geographic diversity, solid profitability and ongoing cost-saving initiatives. Our ratings also reflect the significant competition that Kimberly-Clark faces from formidable global competitors including Procter & Gamble Co. and Georgia-Pacific LLC,” S&P said.

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