Moody's assigns Kellogg notes A3

Moody's Investors Service said it assigned an A3 rating to Kellogg Co.'s $500 million of 10-year senior unsecured notes being offered and affirmed its existing debt ratings, including its Prime-2 short-term rating for commercial paper.

The outlook is stable.

Net proceeds from the sale of the notes will be used primarily to fund the tender offer Kellogg launched on Oct. 28 to purchase up to $500 million of its 6.60% notes due April 2011, the agency said.

Kellogg's ratings reflect its strong brand equity, stable operating performance, leading shares in ready-to-eat cereal and snacks, and a proven and disciplined business strategy, Moody's said.

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