S&P rates Heinz notes BBB, preferreds BB+

Standard & Poor's said it assigned H.J. Heinz Co. a BBB rating to the company's proposed $500 million senior unsecured notes due 2013.

The agency also assigned a BB+ rating to subsidiary Heinz Finance Co.'s proposed $350 million voting cumulative preferred stock, series B, due July 2013.

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

Ratings reflect the company's broad, strong portfolio of branded products, geographic diversity and relatively stable packaged and processed food industry, the agency said.

These factors are offset by credit measures that are at the low end of the rating category medians because of high levels of share repurchases and a legacy of debt-financed acquisitions, S&P noted.

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