Moody's rates Kellogg notes A3

Moody's Investors Service said it assigned an A3 rating to Kellogg Co.'s $1 billion of 10-year senior notes due December 2020.

The outlook is stable.

Proceeds from the new notes will be used for general corporate purposes, including pension contributions and repayment of commercial paper borrowings issued to fund share repurchases, the agency said.

The rating reflects the company's strong brand equity, leading shares in ready-to-eat cereals and snacks, and a proven core business strategy that prioritizes sustained high levels of investment in brand support, product innovation and process improvement, Moody's said.

The rating also considers Kellogg's declining sales and margins, the agency said.

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