Fitch cuts Clorox

Fitch Ratings said it downgraded to BBB from BBB+ Clorox Co.'s issuer default rating, senior unsecured debt and $1.3 billion revolving credit facility.

The short-term issuer default rating and the commercial paper rating remain unchanged at F2.

The outlook is stable.

The downgrades follow the company's announcement that it will acquire Burt's Bees in a mainly debt-financed deal that will result in weaker credit metrics and financial flexibility, according to Fitch.

Escalating commodity costs and the attendant pressure on margins are concerns in the intermediate term, the agency said.

Clorox's pro-forma leverage is expected to be more than 3 times.

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