Moody’s affirms Procter & Gamble

Moody's Investors Service said it affirmed the ratings of Procter & Gamble Co., including the Aa3 senior unsecured rating and Prime-1 short-term rating.

This follows the company's announcement that it plans to divest a portion of its beauty business.

The outlook remains stable.

Moody's said it views the divestiture of these beauty brands as a modest near-term credit negative due to the loss of earnings and product diversity. However, the earnings it is losing are not meaningful enough to affect Procter's Aa3 senior unsecured ratings or stable rating outlook.

Additionally, this transaction allows Procter to further focus on more profitable brands, the agency said.

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