S&P gives Kellogg notes BBB+

Standard & Poor's said it assigned its preliminary BBB+ senior unsecured debt rating to Kellogg Co.'s (BBB+/stable/A-2) form S-3 debt shelf registration and also assigned its BBB+ senior unsecured rating to the $750 million of 4.45% notes due 2016, which Kellogg is offering.

The company will use the proceeds to repay a portion of U.S. commercial paper, S&P said.

The outlook is stable.

"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," she continued.

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