S&P Global Ratings on Aug. 29 affirmed The Clorox Co.'s issuer credit and long-term debt ratings of A- and its short-term issuer credit and commercial paper ratings of A-2, as it expects the household products maker to maintain debt leverage between 2x and 2.5x.
The ratings agency also said its outlook on the household products maker is stable, reflecting its view that Clorox will continue organic revenue growth in the low single digits, maintain an EBITDA margin in the low 20% range and generate solid cash flow over the next two years.
Although S&P anticipates that Clorox will make bolt-on acquisition deals and faces near-term pressure on its gross margins due to higher commodity and freight costs, it believes the company will still maintain a relatively conservative financial policy.
In addition, S&P revised its financial risk profile on Clorox to intermediate from modest in response to the company's plans to buy back about half of its $2 billion share purchase authorization in fiscal 2019.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found here.