Fitch rates Kellogg notes BBB

Fitch Ratings said it assigned a BBB rating to Kellogg Co.’s $600 million senior unsecured notes due 2023.

Proceeds will be used to refinance the $500 million senior unsecured notes due November 2016 and reduce commercial paper outstanding, which totaled $420 million as of Oct. 1.

Fitch said the ratings reflect its expectations that organic volume will remain modestly negative over the medium-term given Kellogg's exposure to mature markets at about 85% of total sales and an underdeveloped natural/organic offering. Volumes have been negative in the range of negative 0.5% to negative 2.6% on a consolidated basis in five of the past six years.

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