According to a new special report, Fitch does not anticipate a material negative impact on liquidity from funding higher levels of pension expense in 2009 and 2010, barring a complete falloff in the capital markets below the levels seen at the end of 2008 and/or marked declines in the global economy. The consumer product sector has considerable liquidity on an overall basis and should be able to invest in operations at required levels.

For Fitch-rated companies, cash contributions to global defined benefit pension plans, which include both qualified and unqualified plans, are slated to increase 54% to $1.1 billion in 2009. However, the average funds flow from operations (FFO) has declined by approximately 22% in the first six months of 2009. As a result, five companies, including Avon Products, Inc., The Black & Decker Corporation, Kimberly-Clark Corporation, Newell Rubbermaid Inc. and Whirlpool Corporation could have materially higher funding levels. Nonetheless, all have significant liquidity to fund their obligations in the near term.

For detailed benefit plan status, funding status and 2010 expectations for the consumer product sector, the special report 'Consumer Product Sector Pension Shortfalls - No Near-Term Concerns' is available on the Fitch Ratings' web site at 'www.fitchratings.com.'

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, 'www.fitchratings.com'. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.

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