U.S.-based Kimberly-Clark Corp. lowered 2021 guidance for the second time in three months, citing record input cost inflation, supply chain difficulties, and tough macroeconomic conditions. Many of these will likely persist well into 2022. We affirmed our 'A' issuer credit rating on the household products and personal care manufacturer and revised our outlook to negative from stable. The negative outlook reflects the potential for a lower rating over the next two years if the company cannot strengthen credit ratios in line with our forecast, including sustaining adjusted leverage in the low-2x area. Despite the third-quarter earnings miss, Kimberly-Clark's efforts to mitigate these cost pressures--as well as North American tissue destocking, which will likely abate soon--were effective. Adjusted operating profit (ex-restructuring
