Research Update: 3M Co. 'BBB+' Rating Affirmed On Dividend Plans After Solventum Spinoff; Outlook Is Negative - S&P Global Ratings’ Credit Research

Research Update: 3M Co. 'BBB+' Rating Affirmed On Dividend Plans After Solventum Spinoff; Outlook Is Negative

Research Update: 3M Co. 'BBB+' Rating Affirmed On Dividend Plans After Solventum Spinoff; Outlook Is Negative - S&P Global Ratings’ Credit Research
Research Update: 3M Co. 'BBB+' Rating Affirmed On Dividend Plans After Solventum Spinoff; Outlook Is Negative
Published May 08, 2024
8 pages (3678 words) — Published May 08, 2024
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

On April 30, 2024, 3M Co. announced its first indications of a lower dividend, following the spinoff of its health care business, Solventum, earlier in the month. As a result, we estimate 3M should have sufficient cash flow in 2024 and 2025 to reduce its S&P Global Ratings-adjusted debt leverage to below 3x from 3.3x as of Dec. 31, 2023. We affirmed our 'BBB+' issuer credit rating on 3M and removed it from CreditWatch with negative implications, where we placed it on July 26, 2022. The outlook is negative, reflecting the risk that any combination of share repurchases, weaker earnings, or more debt-like obligations could keep debt leverage above 3x for another year or two. 3M's debt leverage has little

  
Brief Excerpt:

...- On April 30, 2024, 3M Co. announced its first indications of a lower dividend, following the spinoff of its health care business, Solventum, earlier in the month. - As a result, we estimate 3M should have sufficient cash flow in 2024 and 2025 to reduce its S&P Global Ratings-adjusted debt leverage to below 3x from 3.3x as of Dec. 31, 2023. - We affirmed our '###+' issuer credit rating on 3M and removed it from CreditWatch with negative implications, where we placed it on July 26, 2022. - The outlook is negative, reflecting the risk that any combination of share repurchases, weaker earnings, or more debt-like obligations could keep debt leverage above 3x for another year or two. 3M's debt leverage has little cushion early in 2024, but robust cash flow should enable the company to lower leverage to around 2.5x in 2025....

  
Report Type:

Research Update

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

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: 3M Co. 'BBB+' Rating Affirmed On Dividend Plans After Solventum Spinoff; Outlook Is Negative" May 08, 2024. Alacra Store. May 11, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-3M-Co-BBB-Rating-Affirmed-On-Dividend-Plans-After-Solventum-Spinoff-Outlook-Is-Negative-3167190>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: 3M Co. 'BBB+' Rating Affirmed On Dividend Plans After Solventum Spinoff; Outlook Is Negative May 08, 2024. New York, NY: Alacra Store. Retrieved May 11, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-3M-Co-BBB-Rating-Affirmed-On-Dividend-Plans-After-Solventum-Spinoff-Outlook-Is-Negative-3167190>
  
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