S&P changes Kellogg to negative

Standard & Poor's said it revised its outlook on Kellogg Co. to negative from stable.

The agency also affirmed all ratings, including the BBB+ corporate credit rating.

"The negative outlook reflects our view that we could lower the ratings if operating performance continues to deteriorate as a result of a continued drop in cereals and snack sales, the company incurs higher-than-expected cash costs associated with Project K, or the company increases its share repurchases or dividends, increasing its debt levels, resulting in leverage sustained near the mid-3x area and funds from operations to debt at 20% or below during the next 12 months," S&P credit analyst Bea Chiem said in a news release.

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