Moody's: General Mills unchanged

Moody's Investors Service said that the ratings of General Mills, Inc. are currently unaffected by the proposed €810 million acquisition of a 50% stake in Yoplait SAS and related brands and a controlling interest in the Yoplait operating company.

General Mills is currently in exclusive negotiations with PAI partners, a Paris-based private equity firm and Sodiaal to purchase the 50% stake owned by PAI partners plus an incremental controlling interest the Yoplait operating company from Sodiaal, Moody's said.

Based on the size of the proposed transaction relative to the company's financial cushion, leverage would increase modestly with debt protection measures likely remaining within the bounds of the Baa1 senior debt rating, the agency said.

The transaction will have positive long-term strategic implications for General Mills as it would further consolidate the global Yoplait brand and would allow General Mills to extend its successful Yoplait product innovations in the United States across international and expansion markets, the agency added.

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