TEXT-S&P on U.S. consumer products industry outlook

Tue Jul 10, 2012 2:23pm EDT

July 10 - Given the continued slow economic recovery, the credit quality of
U.S. consumer products companies will be pressured if higher energy, food, and
clothing prices force consumers to reduce spending and raw material costs
increase further, despite having recently abated somewhat. But according to a
Standard & Poor's Ratings Services report published today, most consumer
products issuers remain ready for this ongoing challenge. 

"Our credit outlook for 2012 remains stable for U.S. consumer nondurables," 
said credit analyst Nicole Delz Lynch, referring to food and beverage 
companies. For the durables sector (major home appliances/white goods, 
furniture, home improvement products, small appliances, office products, and 
other consumer discretionary household products companies), she added, "Our 
outlook is stable to slightly negative for some subsectors, as compared with 
2011." 

The report, titled "Rating Trends For U.S. Consumer Products Companies 
Continue To Improve," looks at rating trends in these sectors in the first 
half of 2012, and discusses Standard & Poor's ratings expectations for the 
second half of the year. 

The report is available to subscribers of RatingsDirect on the Global Credit 
Portal at www.globalcreditportal.com. If you are not a RatingsDirect 
subscriber, you may purchase a copy of the report by calling (1) 212-438-7280 
or sending an e-mail to research_request@standardandpoors.com. Ratings 
information can also be found on Standard & Poor's public Web site by using 
the Ratings search box located in the left column at www.standardandpoors.com.