S&P provides BBB to Kellogg notes

S&P said it assigned a BBB senior unsecured debt rating to Kellogg Co.'s €600 million senior unsecured notes due 2022.

Kellogg intends to use the proceeds for general corporate purposes, including the repayment of its $400 million 1.75% senior unsecured notes due May 17, 2017, and to reduce commercial paper borrowings.

The notes are unsecured obligations that rank on parity with the company's other unsecured notes but are subordinated to liabilities of the company's subsidiaries.

All existing ratings are unchanged. The agency estimates that the company had roughly $8 billion in reported debt outstanding as of April 1.

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

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