Fitch affirms Kellogg

Fitch Ratings said it affirmed Kellogg Co.'s BBB+ long-term issuer default, senior unsecured debt and bank credit facility ratings and its F2 short-term issuer default and commercial paper ratings.

Also affirmed were the BBB+ long-term issuer default ratings and F2 short-term issuer default and commercial paper ratings of Kellogg Europe Co. Ltd. and Kellogg Holding Co. Ltd.

The outlook is positive.

The agency said the positive outlook reflects the fact that the company's credit measures are better than typically expected for the current rating category, giving the company room at the current rating level to accommodate its bolt-on acquisition strategy. The total debt-to-operating EBITDA ratio was 2.2 times for the year ended Dec. 29, and Fitch expects credit metrics to remain fairly steady despite ongoing cost pressures.

Kellogg's ratings incorporate its leading market share positions, strong brand equity, solid top-line growth and consistency in operating earnings, Fitch said.

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