Moody's to confirm Kraft

Moody's said that if Kraft Foods Inc.'s consent solicitation is successful, the rating on Cadbury Schweppes US Finance LLC's $1 billion senior unsecured notes due 2013 likely would be confirmed at Baa2.

The debt ratings on all other rated notes issued by Cadbury plc and subsidiaries, including $1.1 billion equivalent of sterling-denominated notes, would remain under review for possible downgrade, Moody's said.

Kraft launched a consent solicitation to holders of notes of Cadbury Schweppes, a wholly-owned subsidiary. Kraft is proposing to amend certain covenants of the indenture to match in substance those contained in the indenture for the existing Kraft notes, the agency said.

The ratings are supported by its global market presence, leading category market shares and broadly diversified portfolio of branded packaged food products, strengths that will be enhanced by the addition of Cadbury's strong franchise brands and access to fast-growing developing markets, Moody's said.

These strengths are offset by elevated financial leverage that resulted from the Cadbury acquisition completed in February, the agency added.

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