S&P assigns General Mills convertibles BBB+

Standard & Poor's said it assigned its BBB+ senior unsecured rating to General Mills Inc.'s proposed $1 billion floating-rate convertible notes due 2037, with a $150 million over-allotment provision.

At the same time, S&P said it affirmed its ratings on the packaged food company, including its BBB+ corporate credit rating.

The agency added that proceeds from this debt issuance will be used to repay a portion of outstanding U.S. commercial paper.

The outlook is stable.

The ratings on General Mills reflect its strong business risk profile, highlighted by its portfolio of leading packaged-food brands and its historically stable cash flow, the agency said, noting that these factors help offset an intermediate financial risk profile that, although improved, remains slightly weak for the rating.

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