Fitch: Kimberly-Clark notes A

Fitch Ratings said it assigned an expected rating of A to Kimberly-Clark de Mexico, SAB de CV’s proposed $250 million notes due 2025.

The notes will rank at least pari passu in right of payment with all unsecured and unsubordinated debt.

The proceeds from the proposed issuance are expected to be used for general corporate purposes and debt repayment, Fitch said.

The company’s solid business profile is supported by its brand portfolio, low cost structure, extensive distribution network and access to Kimberly-Clark Corp.’s technology and research and development capabilities, the agency said.

The ratings also consider its ability to withstand competitive pressures and soft consumer demand, manage pricing and offset input-cost volatility, all of which is based on its leading business position in Mexico’s consumer product market, Fitch said.

The company is the market leader in most of the product categories with market share positions that are usually three to six times higher than those of the nearest competitor, the agency added.

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