This report does not constitute a rating action. TORONTO (S&P Global Ratings) Nov. 4, 2026--S&P Global Ratings today said that liabilities related to 3M Co.’s $7.35 billion settlement will push leverage above our 3x downside threshold in 2026, but steady earnings and cash flow will likely reduce it below 3x within a few quarters. Further, we believe this settlement reduces a large financial overhang from potential liabilities, although PFAS risks still include a range of lawsuits in the U.S. and around the world. 3M has good cash flow cushion to fund legal settlements to date, and we expect flexible share buybacks are crucial to keeping leverage in check. We estimate the tax-effected present value of the PFAS-related personal injury claims
