Moody’s gives ConAgra notes Baa2

Moody's Investors Service said it assigned a Baa2 rating to $550 million of senior unsecured floating-rate notes being offered by ConAgra Foods, Inc.

Net proceeds will be used for general corporate purposes, including the repayment of commercial paper and other debt.

Also on July 21, ConAgra announced a tender offer for up to $500 million of a series of senior unsecured notes maturing between 2017 and 2043. Pursuant to the tender offer, the company intends to purchase for cash up to $500 million combined aggregate principal amount of its 3.2% notes due 2023, its 4.65% notes due 2043, its 7% notes due 2019, its 5.819% notes due 2017 and its 2.1% notes due 2018.

Moody’s said ConAgra's Baa2 rating is supported by its diversified portfolio of branded, private label and commercial food products, its solid cash flows and relatively large scale.

The rating is constrained by weakened credit metrics that resulted from the 2013 Ralcorp acquisition, subsequent integration challenges, and by the limited strength of its portfolio of mostly middle-tier brands, the agency said.

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