We believe L’Oréal will finance the deal mainly through cash on hand and potentially some additional debt, similar to its approach in previous acquisitions.
Our credit view of this issuer reflects its predictable and strong cash flow generation, against its soft volume growth following sharp price increases.
Cost inflation and increased marketing spending will strain profitability, but terminating its share buyback programme will support gradual credit ratio improvement
Our credit view of Nestlé reflects its predictable and strong cash flow generation, offset by its financial policy characterised by high shareholder distributions.
Our credit view of Nestlé reflects its superior business profile, predictable and strong cash flow generation, offsetting pressure on credit metrics because of large share buyback.
Our credit view of Nestle S.A. reflects its strong cash flow generation, despite high cost inflation, offsetting its relatively weak credit metrics for the rating.