(Alliance News) - Moody's Investors Service on Monday said it has assigned A3 ratings to the new senior unsecured notes being issued by consumer goods company Reckitt Benckiser Group PLC.
The notes have been given a negative outlook to reflect the increased uncertainty regarding the company's ability to reduce leverage in line with Moody's expectations due to its rising investment needs and expected lower profitability and free cash flow generation.
The negative outlook also reflects greater macroeconomic uncertainty and the prospect of lower global growth driven by the coronavirus outbreak, Moody's said.
Reckitt plans to use the proceeds from the notes issue for general corporate finance purposes. It plans to issue across three tranches and maturities between six and 12 years.
Moody's believes the notes issue could include reducing the amount of outstanding commercial paper.
The company's overall current A3 long term issuer rating and negative outlook are unaffected by the planned issuance of these notes, the ratings agency noted.
Shares in Reckitt Benckiser closed at 6,846.00 pence each on Monday in London, up 2.9%.
By Tapan Panchal; tapanpanchal@alliancenews.com
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