S&P rates Whirlpool notes BBB

S&P said it assigned a BBB debt rating to Whirlpool Corp.'s €600 million euro-denominated senior unsecured notes due 2027.

The notes will be issued by Whirlpool Finance Luxembourg Sarl, a wholly owned European finance subsidiary of Whirlpool Corp.

This entity holds no material assets and does not engage in any business activities or operations other than intercompany financings, the agency said.

Whirlpool will guarantee the notes, S&P added.

For purposes of the ratings, the agency said it views the consolidated group and its subsidiaries as one entity at Whirlpool.

The notes are subordinated to all of the liabilities of Whirlpool's subsidiaries and secured indebtedness, but equal in right of payment of Whirlpool's existing and future senior unsecured debt and senior in right of payment to all of the company's existing and future subordinated debt, S&P said.

The proceeds will be used for general corporate purposes, including the repayment of a portion of Whirlpool's commercial-paper borrowings, the agency said.

The ratings reflect the company's strong market position as the largest major appliance manufacturer in the world, supported by its portfolio of well-recognized brands, breadth of product offerings and geographic diversity, S&P said.

Other key credit factors include a view of the intense competition from several large, well-capitalized international companies, participation in a cyclical industry and exposure to fluctuating raw material costs, the agency said.

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