Moody's: McCormick notes at A2

Moody's Investors Service said it assigned an A2 rating to the $250 million of 10-year senior notes issued by McCormick & Co.

The outlook is stable.

McCormick intends to use the proceeds to repay existing debt and to fund acquisitions including the recently announced acquisition of Kamis, SA and newly formed joint venture with Kohinoor Foods Ltd.

The announced Kamis and Kohinoor transactions together will result in a modest increase in leverage, but credit metrics should remain within acceptable bounds for the A2 rating category, the agency added.

The ratings are supported by its worldwide leadership position in spices and flavorings, as well as its stable earnings and cash flow as well as the company's high exposure to the restaurant industry that continues to report softness due to the weak global economy, the agency said.

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