TEXT - S&P says Kimberly-Clark ratings unaffected by notes remarketing
Dec 19 - Standard & Poor's Ratings Services said today its ratings on Dallas-based Kimberly-Clark Corp. (including the 'A' long-term and 'A-1' short-term corporate credit ratings, and the 'A' senior unsecured debt rating on the company's $200 million dealer remarketable securities offering due Dec. 19, 2016) remain unchanged following the remarketing of these securities. The remarketable securities were originally issued in December 2006 pursuant to Rule 144A, and Kimberly-Clark will not receive proceeds from the remarketing. These securities will bear an interest rate of 4.215% until Dec. 19, 2013, the next remarketing date. For the 12 months ended Sept. 30, 2012, the ratio of lease- and pension-adjusted total debt to EBITDA was about 1.9x, and we expect the company to maintain leverage in the 2x area through the end of fiscal 2013. The ratings on Kimberly-Clark Corp., a global manufacturer and marketer of household and personal care products, reflects its "strong" business profile and its "modest" financial risk profile. Standard & Poor's view that Kimberly-Clark's business risk profile is strong is based on the diversity and strength of the company's product portfolio, in addition to its well-established brands and very good market positions globally. The company's exposure to the volatility of commodity and energy costs over the past several years, and sensitivity to consumer trade-down under weaker economic conditions, are offsetting risk factors.