Maumelle (City of) AR -- Moody's Rates Kimberly-Clark's Industrial Revenue Bond A2/P-1; Outlook Stable

New York, August 24, 2015 -- Moody's Investors Service ("Moody's") today assigned an A2 senior unsecured rating and a Prime-1 short-term rating to Kimberly-Clark Corporation's ("KMB") proposed $40 million of senior unsecured industrial revenue bonds. The bonds, which will be issued by the City of Maumelle, Arkansas, will be backed by KMB's lease payments associated with its manufacturing facility in the municipality. The obligation of Kimberly-Clark to make the lease payments backing the bonds are general unsecured obligations of Kimberly-Clark Corporation. The short-term rating reflects the remarketing option in this bond for various maturities up to its final maturity in 2045. To the extent the bonds cannot be successfully remarketed, they may be put to the company. Moody's believes that the company's strong liquidity profile, as evidenced by its cash balance of $603 million at June 30, 2015, projected free cash flow, and its $2 billion revolving credit facility expiring in June 2019, is more than enough to backstop the proposed bonds as well as other potential cash needs. The outlook on the ratings is stable.

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