S&P rates Kenvue, notes A on separation from J&J

S&P said it assigned its A long-term issuer credit rating and A-1 short-term issuer credit rating to Kenvue Inc. and assigned an A-1 rating to its $4 billion CP program and an A rating to its senior unsecured notes.

U.S.-based Kenvue, formed to hold and conduct the operational activities in anticipation of the planned separation of the consumer health business from Johnson & Johnson, is establishing a $4 billion commercial paper program backstopped by an unrated revolving credit facility. S&P said it expects the separation to commence soon.

The outlook is stable.

“The stable outlook reflects our expectation that Kenvue will organically strengthen adjusted EBITDA and repay debt such that it reaches and sustains S&P Global Ratings-adjusted leverage of about 2x,” S&P said in a news release.

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