S&P: General Mills unchanged after add-on

Standard & Poor's said the BBB+ rating on General Mills Inc.'s now $500 million floating-rate notes due 2016 will remain unchanged following news that the company will add $250 million to its $250 million floating-rate notes due 2016 previously issued in January 2013.

The add-on will have identical terms with the outstanding notes.

The company indicated that it will use proceeds to repay a portion of its outstanding commercial paper, S&P said.

The BBB+ corporate credit rating on General Mills reflects the company's strong business risk profile and intermediate financial risk profile, S&P said.

Key credit factors considered are the company's portfolio of leading packaged food brands with good market positions in the highly competitive packaged foods industry, participation in diversified food categories and historically stable cash flow, the agency said.

The company's intermediate financial risk profile incorporates an expectation that leverage will not increase to more than 3x and funds from operations-to-total debt will remain at more than 25%, despite probable share repurchase and acquisition activity, S&P said.

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