16.11.2014 20:35:00
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Procter & Gamble Company (The) -- Moody's Says Procter & Gamble's Sale of Duracell is Credit Negative
New York, November 16, 2014 -- Procter & Gamble's ("P&G") announcement on Thursday that it has agreed to sell Duracell to Berkshire Hathaway in exchange for 52.8 million shares of P&G stock (valued at approximately $4.7 billion at the time of the announcement)is a credit negative. Effectively Moody's views this as a share repurchase funded with an earnings and cash generating asset and cash. However the transaction does not affect the company's Aa3 senior unsecured rating and stable outlook.