Fitch Affirms Clorox' IDR at 'BBB'; Outlook to Positive; Rates New Senior Notes 'BBB'

NEW YORK--(Business Wire)--
Fitch Ratings has affirmed the following ratings on The Clorox Company (Clorox):

--Issuer Default Rating (IDR) at 'BBB';

--Unsecured bank facility at 'BBB';

--Senior unsecured Notes at 'BBB';

--Short-term IDR at 'F2';

--Commercial paper program at 'F2'.

The $1.1 billion revolving credit facility and $2.7 billion in unsecured senior
notes are affected by this action. Fitch also assigns a 'BBB' rating to the $300
million 3.55% senior unsecured note issue with a maturity date of Nov. 1, 2015,
which is expected to be settled on Nov. 9, 2009. The new issue will be used to
partially refinance a $575 million 4.2% note which matures on Jan. 10, 2010. The
remaining $275 million is expected to be refinanced with commercial paper. The
Rating Outlook is Positive.

Clorox's ratings reflect its strong financial and business profile with a
competitive focus on having big-share brands in mid-sized categories. The
ratings also recognize that commodity price movement, while relatively benign at
present, can fluctuate significantly, and that there is a modest portion of
Clorox's revenues related to bleach and trash bags that have a strong private
label presence. Clorox had $5.4 billion in revenues over the last 12 months.

The Positive Outlook incorporates Clorox's improved profitability, lower
leverage and Fitch's expectations for solid free cash flow, on average, at
fiscal 2009 levels or a bit better over the medium term. Gross and operating
margins have improved sequentially for the four quarters through Sept. 30, 2009.
Margin improvement has been substantial - at least 500 basis points - over the
past four quarters. Leverage (Debt/EBITDA) has declined to 2.5 times (x) from
the 3.2x seen in 2007 when Clorox concluded its accelerated share repurchase
program and the Burt's Bees acquisition. Fitch expects debt balances to remain
essentially flat over the medium term. With this new issuance, Clorox improves
its liquidity, as there would be no material long-term debt maturity until the
latter part of 2012.

A change in the rating would be predicated on Clorox maintaining its operational
momentum in the next year in a slow organic growth and highly promotional
environment. Additionally, Fitch expects Clorox will balance any
shareholder-friendly activities and potential acquisitions within its publicly
stated leverage target of between the 2x and 2.5x level.

Clorox, based in Oakland, California, is a leading U.S. household products
company. Its Clorox bleach brand holds the No. 1 position in the domestic bleach
market with a share of over 60%. Leading household cleaners include Pine-Sol,
Clorox Clean-up, Formula 409, Tilex and Liquid-Plumr. Other product categories
include salad dressings and sauces (Hidden Valley Ranch, KC Masterpiece), cat
litters (Fresh Step, Scoop Away), charcoal briquettes (Kingsford), water
filtration systems (Brita), plastic bags and wraps (Glad), and auto care (Armor
All, STP). The company's largest customer, Wal-Mart Stores, Inc., accounts for
27% of sales.

Additional information is available at 'www.fitchratings.com'.

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Fitch Ratings, New York
Grace Barnett, CPA, 212-908-0718
Tom Razukas, CFA, 212-908-0223
or
Media Relations:
Cindy Stoller, 212-908-0526
Email: cindy.stoller@fitchratings.com

Copyright Business Wire 2009