S&P applies AA- to Procter & Gamble notes

Standard & Poor's said it assigned its AA- issue-level rating to Procter & Gamble Co.'s five-year fixed-rate notes, which will be drawn from its shelf filed Oct. 24, 2014 and denominated in Japanese Yen.

The agency expects the company to use net proceeds from the issuance for debt repayment.

All other ratings on the company, including the AA- long-term and A-1+ short-term corporate credit ratings, remain unchanged.

The outlook is stable.

S&P said the ratings incorporate Procter & Gamble strong global position in the household and personal care categories, which is highlighted by its substantial product diversity; its history of successful product development and innovation; its good geographic diversity; and its solid relationships with key retailers.

The agency’s financial risk profile assessment reflects its forecast that Procter & Gamble will maintain solid credit metrics and continue to generate substantial and consistent free cash flow. Despite high levels of shareholder payments, S&P expects the company to maintain financial leverage below 2 times and a ratio of funds from operations to debt in the low-40% area.

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