S&P rates Kimberly-Clark bond A-

Standard & Poor's said it assigned its A- issue-level rating to Kimberly-Clark de Mexico SAB de CV's (A-/stable/--) proposed 10-year senior unsecured bond for up to $250 million.

KCM plans to use the proceeds for general corporate purposes, including the payment of short-term debt.

S&P said its ratings on KCM reflect the company's "satisfactory" business risk profile, "modest" financial risk profile, "adequate" liquidity and its favorable comparison to other industry peers, which results in a one-notch uplift from the anchor score.

The rating on KCM is one notch above the sovereign rating on Mexico (foreign currency: BBB+/stable/A-2; local currency: A/stable/A-1). In the agency's view, the company's strong free operating cash generation allows it to withstand a Mexican sovereign default.

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