S&P rates Kraft notes BBB+

Standard & Poor's said it assigned a BBB+ rating to Kraft Foods Inc.'s €2.85 billion senior unsecured note issue, which includes €2 billion of 5¾% senior unsecured notes due 2012 and €850 million of 6¼% senior unsecured notes due 2015.

Proceeds will be used for general corporate purposes, including repayment of drawings under a 364-day bridge facility due November 2008 for the acquisition of Groupe Danone SA.

Ratings reflect the company's position as one of the world's largest food and beverage companies, with a broad portfolio of well-known brands and geographic diversity, the agency said.

A more aggressive financial policy, however, has led to higher debt levels and weaker credit measures, S&P said. Pro forma leverage is expected to remain at between 3 times to 3.5 times over the intermediate term.

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