Research Update: Colgate-Palmolive Co. Downgraded To 'A+' On Business Risk Reassessment; Outlook Stable

We lowered our view of U.S.-based Colgate-Palmolive Co.?s (Colgate) business risk following its multiyear net share losses and profit underperformance relative to other high investment-grade rated consumer product issuers. This is notwithstanding Colgate's profit and share improvement over the last 12-24 months. Other considerations included the company's concentration in oral care and modest scale relative to other issuers with excellent business risk profiles. We lowered all of our ratings on the global consumer products and pet nutrition company, including the long-term and short-term issuer credit ratings, to 'A+' and 'A-1' from 'AA-' and 'A-1+', respectively. The stable outlook reflects our expectation that in 2024, Colgate will grow net sales in the low-single-digit percent area and moderately improve profitability, use substantially

...- We lowered our view of U.S.-based Colgate-Palmolive Co.'s (Colgate) business risk following its multiyear net share losses and profit underperformance relative to other high investment-grade rated consumer product issuers. This is notwithstanding Colgate's profit and share improvement over the last 12-24 months. - Other considerations included the company's concentration in oral care and modest scale relative to other issuers with excellent business risk profiles. - We lowered all of our ratings on the global consumer products and pet nutrition company, including the long-term and short-term issuer credit ratings, to 'A+' and 'A-1' from '##-' and 'A-1+', respectively. - The stable outlook reflects our expectation that in 2024, Colgate will grow net sales in the low-single-digit percent area and moderately improve profitability, use substantially all free operating cash flow (FOCF) for shareholder payments, and reduce S&P Global Ratings-adjusted leverage to about 1.8x....

Research Update