Procter & Gamble Company (The) -- Moody's says Procter & Gamble's $2.9 billion pet care sale a modest credit positive

New York, April 10, 2014 -- Moody's Investor Service today stated that The Procter & Gamble Company's (P&G) announced agreement to sell the bulk of its IAMS, EUKANUBA, and NATURA pet food operations to Mars Inc. for approximately $2.9 billion as well as its plans to seek a buyer for the remainder of the business is a slight credit positive. This is because it eliminates an underperforming unit at a high multiple, allowing the company to focus its resources on more core brands and providing additional cash for reinvestment and debt repayment. Moody's would consider the sale less favorably if P&G ultimately distributes the cash to shareholders due to the loss of earnings. The transaction, however, has no immediate impact on P&G's Aa3 senior unsecured rating. For further information, please see the issuer comment posted to www.moodys.com.

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