NEW YORK (AFX) - Fitch Ratings said Friday it affirmed consumer products maker Clorox Co.'s debt ratings but lowered its outlook to 'Negative' from 'Stable.'
Fitch maintained Clorox's issuer default rating, senior unsecured debt and $1.3 billion revolving credit facility at 'A-.' It also affirmed its commercial paper program rating of 'F2.'
As of March 31, Clorox, which makes household cleaners, salad dressings, cat litter and plastic wrap among numerous other products, had $2.59 billion in outstanding senior unsecured debt.
Fitch said Clorox has a strong business profile and strategic positioning, with many of its products holding the leading market position in its categories.
The company's strong portfolio of brands and competitive stance, combined with its ability to meet cost savings targets has allowed it to increase prices and boost margins, Fitch said.
The ratings service said it revised Clorox's outlook to negative, mainly as a result of declining profit margins and weakened cash flow from operations.
Fitch added that the company's profitability has suffered as escalating commodity costs have more than offset savings and price increases.
Clorox closed up 3 cents at $61.22 on the New York Stock Exchange.
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