Fitch rates Kellogg notes BBB

Fitch Ratings said it assigned a rating of BBB to Kellogg Co.’s €600 million senior unsecured notes due 2024.

The proceeds from the notes will be used to refinance the $750 million senior unsecured notes due May 2016.

The ratings reflect expectations that core volume-driven growth will be modestly positive, Fitch said.

Further, U.S. Morning Foods and U.S. Snacks, which represent $6 billion in revenues and roughly 45% of the portfolio, have had negative organic growth over the past several years, the agency said.

Positive growth in some categories, such as the high single-digit levels for the Pringles brand with nearly $2 billion in revenues, have been offset by negative organic growth trends in other brands, Fitch explained.

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