S&P gives AA- to Procter & Gamble notes

S&P said it assigned its AA- issue-level rating to Procter & Gamble Co.'s proposed senior unsecured notes, which will be drawn from its shelf registration statement filed Oct. 24, 2014.

S&P expects P&G to use the net proceeds from the issuance to redeem its $1.25 billion 4.7% notes due 2019, fund the purchase of up to $1.25 billion principal balance of notes under the Oct. 17, 2016 tender offer, and for general corporate purposes.

“We expect the transaction will have an immaterial impact on credit ratios – which presently include around 1.7x debt to EBITDA and 45% funds from operations (FFO) to debt – notwithstanding make whole and tender premiums,” S&P said in a news release.

All of the other ratings on the company, including the AA- long-term and A-1+ short-term corporate credit ratings, are unchanged. The outlook is stable.

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