Kimberly-Clark Corp. Outlook Revised To Negative; Ratings Affirmed

Although U.S.-based Kimberly-Clark Corp.'s underlying profit performance remains satisfactory, we believe a sustained improvement in credit metrics may not occur due to continued currency headwinds, decelerating global growth, and the company's continued prioritization of shareholder returns over permanent debt reduction. As a result, we have revised our outlook on the global consumer products company to negative from stable. At the same time, we are affirming all of our ratings on the company, including our 'A' corporate credit rating. The negative outlook reflects the potential for short-term commercial paper and long-term rating downgrades over the next two years if funds from operations (FFO) to debt falls below 35% or debt to EBITDA exceeds 2x on a sustained basis. CHICAGO (Standard&

...+ Although U.S.-based Kimberly-Clark Corp.'s underlying profit performance remains satisfactory, we believe a sustained improvement in credit metrics may not occur due to continued currency headwinds, decelerating global growth, and the company's continued prioritization of shareholder returns over permanent debt reduction. + As a result, we have revised our outlook on the global consumer products company to negative from stable. At the same time, we are affirming all of our ratings on the company, including our 'A' corporate credit rating. + The negative outlook reflects the potential for short-term commercial paper and long-term rating downgrades over the next two years if funds from operations (FFO) to debt falls below 35% or debt to EBITDA exceeds 2x on a sustained basis. CHICAGO (Standard & Poor's) Feb. 1, 2016--Standard & Poor's Ratings Services said today that it revised the outlook on Dallas-based Kimberly-Clark Corp. to negative from stable. At the same time, we affirmed all of...

Ratings Action