3M Co.'s Proposed $1.5 Billion Senior Unsecured Notes Rated 'A+' - S&P Global Ratings’ Credit Research

3M Co.'s Proposed $1.5 Billion Senior Unsecured Notes Rated 'A+'

3M Co.'s Proposed $1.5 Billion Senior Unsecured Notes Rated 'A+' - S&P Global Ratings’ Credit Research
3M Co.'s Proposed $1.5 Billion Senior Unsecured Notes Rated 'A+'
Published Mar 25, 2020
3 pages (1247 words) — Published Mar 25, 2020
Price US$ 150.00  |  Buy this Report Now

About This Report

  
Abstract:

NEW YORK (S&P Global Ratings) March 25, 2020--S&P Global Ratings today assigned its 'A+' issue-level rating to 3M Co.'s proposed $1.5 billion (in aggregate) senior unsecured notes. We believe the total amount will fluctuate according to investor demand. The company will issue the debt in various tranches due in 2025, 2030, and 2050. We believe 3M will use the proceeds for general corporate purposes and may invest funds that are not immediately needed in short-term investments, including marketable securities. Since we net available surplus cash and cash equivalents from our debt calculation, we believe the transaction will be leverage neutral at the onset. We recently downgraded 3M to 'A+' from 'AA-' due to higher-than-expected leverage as well as potential environmental

  
Brief Excerpt:

...March 25, 2020 NEW YORK (S&P Global Ratings) March 25, 2020--S&P Global Ratings today assigned its 'A+' issue-level rating to 3M Co.'s proposed $1.5 billion (in aggregate) senior unsecured notes. We believe the total amount will fluctuate according to investor demand. The company will issue the debt in various tranches due in 2025, 2030, and 2050. We believe 3M will use the proceeds for general corporate purposes and may invest funds that are not immediately needed in short-term investments, including marketable securities. Since we net available surplus cash and cash equivalents from our debt calculation, we believe the transaction will be leverage neutral at the onset. We recently downgraded 3M to 'A+' from '##-' due to higher-than-expected leverage as well as potential environmental liabilities related to perfluoroalkoxy alkanes (PFAS). The outlook is negative. For additional information on the ratings, see our most recent research update on 3M, published Feb. 24, 2020....

  
Report Type:

Ratings Action

Ticker
MMM
Issuer
3M Co.
GICS
Industrial Conglomerates (20105010)
Sector
Global Issuers , Structured Finance
Country
United States
Region
United States
Format:
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "3M Co.'s Proposed $1.5 Billion Senior Unsecured Notes Rated 'A+'" Mar 25, 2020. Alacra Store. May 11, 2025. <http://www.alacrastore.com/s-and-p-credit-research/3M-Co-s-Proposed-1-5-Billion-Senior-Unsecured-Notes-Rated-A-2401450>
  
APA:
S&P Global Ratings’ Credit Research. (). 3M Co.'s Proposed $1.5 Billion Senior Unsecured Notes Rated 'A+' Mar 25, 2020. New York, NY: Alacra Store. Retrieved May 11, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/3M-Co-s-Proposed-1-5-Billion-Senior-Unsecured-Notes-Rated-A-2401450>
  
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