3M Co.'s Proposed $1.5 Billion Senior Unsecured Notes Rated 'A+'

NEW YORK (S&P Global Ratings) March 25, 2020--S&P Global Ratings today assigned its 'A+' issue-level rating to 3M Co.'s proposed $1.5 billion (in aggregate) senior unsecured notes. We believe the total amount will fluctuate according to investor demand.
The company will issue the debt in various tranches due in 2025, 2030, and 2050. We believe 3M will use the proceeds for general corporate purposes and may invest funds that are not immediately needed in short-term investments, including marketable securities. Since we net available surplus cash and cash equivalents from our debt calculation, we believe the transaction will be leverage neutral at the onset. We recently downgraded 3M to 'A+' from 'AA-' due to higher-than-expected leverage as well as potential environmental liabilities related to perfluoroalkoxy alkanes (PFAS). The outlook is negative.
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