S&P: Kraft unaffected

Standard & Poor's said its ratings and outlook on Kraft Foods Inc. (A-/stable/A-2) are not affected by the company's definitive agreement with Ralcorp Holdings Inc. (unrated) to merge Post cereals with Ralcorp.

The $2.6 billion deal is expected to close mid-2008.

According to the agency, Kraft will lose more than $1 billion of sales for Post, but the company expects to use about $950 million of merger proceeds to repay debt. S&P said it believes that credit measures will not be materially impacted pro forma for the deal.

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