Fitch rates Kimberly-Clark de Mexico debt AAA(mex)

Fitch Ratings said it assigned AAA(mex) ratings to Kimberly-Clark de Mexico, SAB de CV's proposed local debt issuances, which include variable-rate five-year notes, fixed-rated 10-year notes and a third issue that will depend on market conditions. The combined issuance limit is Ps. 5 billion.

The company has A foreign- and local-currency issuer default ratings and an AAA(mex) long-term national rating, and the agency has assigned AAA(mex) ratings to its certificados bursatiles.

The outlook is stable.

Proceeds from the proposed issuances would be used to fund the company's capex plan, acquire new assets and refinance existing debt.

The agency said the ratings reflect Kimberly-Clark de Mexico's dominant market position, strong cash flow generation, solid liquidity and low leverage. The issuer default rating is above Mexico's A- country ceiling due to the company's strong capital structure and liquidity position, proven debt-payment track record and implicit support from Kimberly-Clark Corp., Fitch said.

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