Moody’s rates Procter & Gamble bonds Aa3

Moody's Investors Service said it assigned Aa3 ratings to Procter & Gamble Co.’s five-year senior unsecured Japanese yen-denominated bonds.

Procter & Gamble intends to use the net proceeds for general corporate purposes, including the refinancing of upcoming maturities.

The outlook remains stable.

Moody’s said the Aa3 rating reflects the significant cash flow and financial flexibility resulting from its large portfolio of well-known branded consumer products with leading market shares. The portfolio and global distribution capabilities provide operating stability, and considerable scale, product and geographic diversity that are supported by a strong reinvestment track record through a range of economic environments.

The agency believes that these strengths and a focus on strong execution will sustain the market position and cash flow performance, notwithstanding operating challenges from sluggish economic conditions and price competition in certain large categories.

Cost savings programs should further enhance investment capacity and increase its operating margin, the agency said. Credit metrics are somewhat weak for the rating, but are mitigated by the company's strong operating profile.

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