S&P assigns Kellogg notes BBB+

Standard & Poor's said it assigned its BBB+ senior unsecured debt rating to Kellogg Co.'s (BBB+/stable/A-2) proposed $500 million of notes due 2019.

The company will issue the notes off of its debt shelf registration, the agency said, noting that Kellogg will use net proceeds from this offering, plus cash on hand and commercial paper, if necessary, to purchase up to $500 million of its $1.4 billion of 6.6% notes due 2011.

According to S&P, Kellogg intends to add any remaining net proceeds from the sale of the notes to its general corporate funds that may be used for repayment of short-term borrowings or other debt, or any other general corporate purpose.

"The ratings on Kellogg reflect its strong business risk profile, highlighted by its leading market positions in the ready-to-eat cereal and snack food industries, and the company's historically stable cash flows," said S&P credit analyst Alison Sullivan.

"These factors help offset Kellogg's moderate debt leverage and cash flow coverage measures that are at the low end of rating category medians."

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.