Reckitt (RKTLN; A3 Pos, A- S) {RKT LN Equity}

Moody's affirms RKTLN at A3 Positive outlook despite Federal case overhang. € lines are bid today (-4-7bps tighter), £ lines unch.

• Moody's has left ratings and outlook unchanged at A3 Positive after a periodic review on the 22nd March 2024 (NEC blow-up was on 15th). Moody's positive take comes alongside numerous equity analyst reports that have voiced the 1) staple nature of the baby formula 2) equity sell-off vs. revenue exposure & litigation risk 3) backing from medical community - though the latter failed to sway a Jury from ruling a pay-out in the first case.
• As we have mentioned previously curve was/is priced well wide of ratings but we questioned timing on near-term catalyst to remove the overhanging risk on the direction the Federal cases will take next year - first likely catalyst we though was appeal results on the state $60m loss - seems Moody's affirmation on A3 Pos. has been enough to bring investors in.