Moody's assigns Kellogg notes Baa2

Moody's Investors Service said it assigned a Baa2 rating to €300 million of eight-year senior unsecured sustainability structured notes being offered by Kellogg Co.

“Kellogg Company's (Baa2 senior unsecured rating) credit profile is supported by its strong brands and leading global shares in the highly profitable, albeit declining long-term, ready-to-eat cereal category,” Moody’s said in a press release.

Kellogg will use the proceeds to fund new or existing projects related to green, social or sustainable investments.

“The issuance is credit positive because Moody's expects that cash and cash flow that would have otherwise funded the targeted investments will be used to reduce debt. In addition, the offering will extend the company's debt maturity profile,” the agency said.

The outlook is stable.

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