3M Co.'s margins were weak in 2019, which resulted in high leverage for the current rating, in our view. The company recently announced an approximately 2% decline in its revenue for 2019, primarily due to continued weakness in China and the automotive and electronics markets. This, coupled with its PFAS-related litigation charges and restructuring charges, weighed on 3M's profitability in 2019. Moreover, future potential liabilities related to per- and polyfluoroalkyl substances (PFAS) continue to pressure the rating. We have not quantified the company's potential additional reserves or settlements, though adverse events could significantly weaken its already stretched credit metrics. Therefore, we are placing all of our ratings on 3M on CreditWatch with negative implications. The CreditWatch reflects the potential that
