S&P rates General Mills notes BBB

S&P said it assigned its BBB issue-level rating to General Mills Inc.'s proposed roughly $6 billion senior unsecured notes to be issued in various tranches with maturities ranging from three to 30 years.

The notes rank on par with the company's other unsecured notes but are subordinated to subsidiaries' liabilities.

All of the existing ratings on the company, including the BBB corporate credit rating, are unchanged. The outlook is stable.

The company intends to use net proceeds along with about $1 billion in common equity, borrowings on its commercial paper program and cash on hand to fund its planned $8 billion purchase of Blue Buffalo Pet Products Inc.

“We believe Blue Buffalo will strengthen General Mills' product and brand portfolio and will enable entry into a new category with faster growth prospects and stable demand characteristics,” the agency said in a news release.

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