S&P applies BBB to Mondelez notes

S&P said it assigned its BBB senior unsecured debt ratings to Mondelez International Inc.'s CHF 225 million fixed-rate senior unsecured notes due 2020 and CHF 125 million fixed-rate senior unsecured notes due 2024.

Mondelez will use net proceeds for general corporate purposes, including funding upcoming debt maturities.

As of Dec. 31, the company had roughly $17.2 billion in reported debt outstanding.

All existing ratings on the company, including the BBB corporate credit ratings, are unchanged.

The outlook is stable.

“Mondelez retains a strong competitive position in the packaged food industry. Key factors in our business risk assessment include the company's good market shares and its position as one of the world's largest snack companies, with a portfolio of brands and international diversification, partly offset by relatively lower EBITDA margins within the highly competitive global snacks industry,” S&P said in a news release.

“Mondelez's financial risk profile reflects our view of the company's substantial debt obligations.

“We expect the company to maintain leverage (as measured by debt to EBITDA) in the 3x to 4x range,” the agency added in the release.

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