Moody's rates Colgate-Palmolive notes Aa3

Moody's Investors Service said it assigned an Aa3 rating to $500 million of senior unsecured notes due August 2047 recently issued by Colgate-Palmolive Co.

The proceeds from the issuance will be used for general corporate purposes, including retirement of commercial paper, Moody's said.

The outlook is stable.

Colgate's Aa3 senior unsecured and prime-1 commercial-paper ratings reflect the company's strong global market positions in multiple consumer product categories, supported by well-known brands and global distribution, Moody's said.

The company's large scale, relatively predictable cash flow and leading global market position in oral care are key rating strengths, the agency said.

Key credit risks include Colgate's high concentration in mature categories, Moody's said, and currency and commodity cost volatilities.

The stable outlook reflects a view that Colgate will at least sustain its market positions and maintain a very conservative capital structure, the agency added.

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