S&P rates L’Oreal notes AA

S&P said it rated L’Oreal SA’s planned senior unsecured notes of about €3 billion, in the form of multiple tranches, including a sustainability-linked bond, with different maturities between two and four years AA.

“We see limited risks in terms of structural subordination considering the group's very low leverage ratio. We therefore rate the proposed notes AA, in line with the issuer credit rating on L'Oreal,” S&P said in a press release.

The proceeds are expected to be used for general corporate proposes, including refinancing part of the repurchase of the 4% of its own shares held by Nestle. The company financed the transaction with balance sheet cash, a new bridge facility and commercial paper.

The outlook is stable.

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