S&P rates Colgate-Palmolive notes AA-

Standard & Poor's said it assigned its preliminary AA- rating to Colgate-Palmolive Co.'s shelf registration statement dated Oct. 24.

The agency also assigned its AA- rating to the company's $134.3 million floating-rate series H medium term notes due 2054, which were drawn under the shelf.

Proceeds will be used for general corporate purposes, including the retirement of commercial paper.

The AA-/A-1+ corporate credit ratings on Colgate-Palmolive remain unchanged, as does the stable outlook.

The company had about $6.1 billion of reported debt outstanding as of Sept 30, 2014.

S&P said the ratings reflect Colgate-Palmolive’s solid position as the largest competitor in the stable global oral care segment, very high brand equity and awareness, its diversified portfolio of consumer brands and its extensive international presence.

These factors support the agency’s "excellent" business risk assessment.

S&P considers the company's financial risk profile to be "modest," based on solid cash flow generating ability and strong credit measures as a result of its conservative financial policy. The agency expects leverage and funds from operations to total debt around 1.5 times and 45%, respectively.

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