S&P assigns Kellogg Canada notes BBB+

Standard & Poor's said it assigned its BBB+ senior unsecured debt rating to Kellogg Canada Inc.'s proposed C$300 million senior notes due 2017.

The notes will be fully and unconditionally guaranteed by Kellogg Co. (BBB+/stable/A-2).

Kellogg intends to use net proceeds, along with cash on hand, to repay its existing 2.1% senior notes due May 22, 2014 at their maturity.

The agency estimates that the company had roughly $8 billion in adjusted debt outstanding as of March 29.

S&P said the BBB+ corporate credit rating reflects Kellogg's "strong" business risk profile. Key credit factors considered in assessing Kellogg's business risk profile include its well-recognized brands, leading market positions in the ready-to-eat cereal and snack food industries and good product and geographic diversity.

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