Fitch downgrades Kellogg

Fitch Ratings said it downgraded Kellogg Co.'s long-term issuer default rating, senior debt and bank credit facility to BBB+ from A-. The F2 short-term issuer default and commercial paper ratings are unchanged.

The outlook is stable.

The agency said the downgrade of the long-term ratings reflects that Kellogg's leverage has remained elevated versus historical levels since the end of 2010 and is likely to remain in the mid 2 times range. Fitch believes Kellogg's maintenance of higher leverage represents a more aggressive financial strategy versus the company's more conservative strategy during the past several years.

Kellogg's ratings continue to incorporate its leading market share positions, strong brand equities and high margins for the packaged food industry, the agency said.

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