Moody’s rates Procter & Gamble notes Aa3

Moody's Investors Service said it assigned an Aa3 rating to $2 billion of senior unsecured notes offered by Procter & Gamble Co.

The proceeds will be used for general corporate purposes and to refinance upcoming maturities of existing debt.

The outlook is stable.

Moody’s said Procter & Gamble's Aa3 senior unsecured and Prime-1 commercial paper ratings reflect the company's significant cash flow and financial flexibility. The company also benefits from a large portfolio of well-known branded consumer products with leading market shares.

“Cost savings programs should further enhance investment capacity and increase its solid operating margin. Credit metrics are somewhat weak for the rating, but are mitigated by the company's strong operating profile and competitive position,” the agency said in a news release.

The stable outlook reflects Moody's expectation that the company will continue to generate meaningful free cash flow, and manage shareholder distributions to maintain a conservative financial profile.

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