S&P rates Kellogg notes BBB

Standard & Poor’s said it assigned a BBB senior unsecured debt rating to Kellogg Co.’s proposed notes offering, which consist of a 10- and 30-year tranche.

The proceeds from this offering will be used to repurchase a portion of its $1.1 billion 7.45% bonds due 2031, repay a portion of commercial paper and pay related fees and expenses.

The company’s BBB corporate credit rating reflects Kellogg’s well-recognized brands, leading market positions in the ready-to-eat cereal and snack-food industries and good product and geographic diversity, S&P said.

These factors are partly offset by the company’s exposure to volatile commodity costs and participation in the highly competitive cereal market, the agency said.

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