Fitch assigns BBB to Kellogg notes

Fitch Ratings said it assigned a BBB rating to Kellogg Co.’s $600 million senior unsecured notes due November 2027.

Proceeds will be used to repay most of the commercial paper borrowings that were used to finance Kellogg's $600 million acquisition of Chicago Bar Co. LLC and to pay related fees and expenses. The transaction closed on Oct. 27 and was initially funded through short-term borrowing.

The outlook is stable.

Fitch said the ratings reflect its expectations that organic volume will remain modestly negative over the medium-term given the Kellogg portfolio's exposure to mature developed markets that account for about 87% of total sales and a nascent natural/organic offering.

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