S&P cuts Colgate-Palmolive

S&P said it downgraded its long-term issuer rating for Colgate-Palmolive Co. to A+ from AA-.

“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,” the agency said in a press release.

S&P said sees Colgate-Palmolive strengthening its credit metrics, which includes lowering its S&P Global Ratings-adjusted leverage to about 1.8x in 2024. Over the last two years, its credit metrics weakened mainly due to pet nutrition acquisitions and high share repurchase activity.

The outlook is stable.

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