Fitch puts Kellogg on watch

Fitch Ratings said it placed the ratings of Kellogg Co. and its subsidiaries on Rating Watch negative following Kellogg's agreement to acquire Procter & Gamble's Pringles business for $2.695 billion in a primarily debt-financed transaction.

On Rating Watch negative includes Kellogg's long-term issuer default rating of BBB+, senior unsecured debt rating of BBB+, bank credit facility rating of BBB+, short-term issuer default rating of F2 and commercial-paper rating of F2.

Kellogg Europe Co. Ltd.'s long-term issuer default rating of BBB+ also was placed on Rating Watch negative, along with its short-term issuer default rating of F2 and commercial-paper rating of F2.

Kellogg Holding Co. Ltd.'s long-term issuer default rating of BBB+, short-term issuer default rating of F2 and commercial-paper rating of F2 also were placed on Rating Watch negative.

The watch will be resolved when additional information regarding Kellogg's financing plans is revealed, along with the pace of debt reduction over the next 18 to 24 months, Fitch said.

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