S&P rates Mondelez notes BBB

S&P said it assigned BBB ratings to Mondelez International Holdings Netherlands BV's proposed senior unsecured notes.

The company is a European operating subsidiary of Mondelez International Inc., which guarantees the bonds.

The proceeds will be used to fund its announced tender offer of certain tranches of existing senior unsecured notes issued at Mondelez International for interest cost savings, S&P said, as well as for near-term debt maturities and general corporate purposes.

The company has issued $3.75 billion notes and has a $1.5 billion term loan, the agency said.

The ratings reflect the company’s strong competitive position in the packaged-food industry as one of the world's largest snack companies, S&P said.

The company has good market share, portfolio of popular brands and international diversification with relatively low EBITDA margins for the industry, the agency added.

The company also has substantial debt obligations and is expected to maintain a debt-to- EBITDA ratio in the 3x to 4x range, S&P said.

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