Moody’s: Reckitt Benckiser view to negative

Moody’s Investors Service said it changed the outlook of Reckitt Benckiser Group plc and its guaranteed subsidiary, Reckitt Benckiser Treasury Services plc to negative from stable.

The change in outlook mirrors the announcement of added investments of £2 billion, most of which will be funded by a productivity program but will also reduce operating margins and free cash flow generation over the next three years. In addition, there is increased uncertainty over the company’s ability to reduce leverage in line with the requirements for the assigned rating, the agency said.

Concurrently. Moody’s affirmed the company’s A3 long term issuer rating. The rating agency also affirmed the A3 backed senior unsecured ratings of Reckitt Benckiser Treasury and the A3 backed senior unsecured ratings of Mead Johnson Nutrition Co.

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