Moody's Sees Procter & Gamble's (PG) Duracell Sale as Credit-Negative Event

Procter & Gamble's (NYSE: PG) announcement on Thursday that it has agreed to sell Duracell to Berkshire Hathaway in exchange for 52.8 million shares of P&G stock (valued at approximately $4.7 billion at the time of the announcement)is a credit negative. Effectively Moody's views this as a share repurchase funded with an earnings and cash generating asset and cash. However the transaction does not affect the company's Aa3 senior unsecured rating and stable outlook.

You May Also Be Interested In

• BofA raises AMD target to $720, sees server CPU TAM tripling to $211B by 2030
• Moody’s upgrades Brinker to Ba1 on Chili’s growth and debt reduction
• Bernstein SocGen's Thoughts on McDonald's (MCD) Following Investor Day