Moody’s gives Kellogg notes Baa2

Moody's Investors Service said it assigned a Baa2 rating to €600 million of 10-year 1.25% senior unsecured notes offered by Kellogg Co.

The outlook is stable.

Net proceeds will be used for general corporate purposes.

Moody’s said Kellogg's Baa2 rating is supported by its strong brands and leading global shares in the high-margin, ready-to-eat (RTE) cereal business and its modest shares in the savory snacks category driven by solid growth in the Pringles business acquired in 2012.

The rating also reflects the agency’s expectation for further deteriorating sales volume and overall operating performance in RTE cereal, a category that is experiencing gradual secular volume declines in developed markets including North America, Europe and Asia.

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