Procter & Gamble Company (PG) has been downgraded from neutral to weak, with its credit rating dropping to a 'D' level as it faces a $400 million after-tax hit from escalating tariffs. Despite reporting a modest 1% net sales growth in Q2 2026, the company fell short of analyst projections, prompting a strategic shift towards portfolio rationalization by divesting underperforming brands. Nevertheless, P&G continues to uphold its status as a 'Dividend King' with a strong 61% payout ratio while showing stock resilience with a 9.4% gain over three months.