S&P rates Bottling Group notes A

Standard & Poor's said it assigned an A rating to the $1.3 billion senior unsecured notes due 2014 issued by Bottling Group LLC, the principal operating subsidiary of Pepsi Bottling Group Inc. and placed the rating on CreditWatch with positive implications.

The A long-term corporate credit rating was affirmed.

The outlook is stable.

Proceeds will be used to repay Bottling Group's $1.3 billion 5.63% senior notes due Feb. 17, 2009 at maturity. Until then, Pepsi bottling will invest proceeds in short-term instruments or use them to repay short-term debt.

The A corporate credit rating reflects Pepsi Bottling's strategic importance to PepsiCo as the world's largest bottler of Pepsi-Cola beverages, the agency said, as well as PepsiCo's 41% stock voting interest in Pepsi Bottling.

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