Fitch rates Colgate-Palmolive notes AA-

Fitch Ratings said it assigned an AA- rating to Colgate-Palmolive Co.’s €500 million senior unsecured medium-term notes due May 2019.

Colgate has an issuer default rating of AA-, long-term issuer default rating of AA-, short-term issuer default rating of F1+, senior unsecured notes rating of AA-, revolving credit facility rating of AA- and commercial-paper rating of F1+.

The outlook is stable.

The notes will be priced at three-month Euribor plus a spread with a 0% floor as the reference rate is currently negative, Fitch said.

The proceeds will be used for general corporate purposes, including repaying commercial paper, the agency said.

The ratings reflect the company’s scale with more than $17 billion in revenues at the 12-months that ended March 31, along with its leading market shares, consistently strong operating performance and considerable liquidity, Fitch said.

The agency said it expects the company to continue generating free cash flow in the $1 billion range annually despite elevated capital expenditures and restructuring expenditures.

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