Henkel's strong free cash flow generation should help the German consumer-goods group remain an A-rated name, despite pressure on credit ratios from the acquisition of Sun Products. UniCredit resumes coverage on Henkel bonds with a marketweight recommendation, even though they trade at tight levels. Henkel caught investors' attention last September when it was effectively paid to finance part of the takeover of Sun Products when it issued M&A-related euro bonds at a negative yield. Together with a Sanofi issue on the same day, they were the first euro corporate bonds to be issued at a negative yield.

(tasos.vossos@wsj.com, @tasosvos)

(END) Dow Jones Newswires

January 25, 2017 06:33 ET (11:33 GMT)

Copyright (c) 2017 Dow Jones & Company, Inc.
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