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Fitch Rates Kellogg's Proposed $750MM Notes 'BBB+'; Outlook Positive.

CHICAGO -- Fitch Ratings has assigned a 'BBB+' rating to Kellogg Company's (Kellogg) proposed $750 million five-year senior unsecured notes offering. The Rating Outlook on all Kellogg ratings is Positive.

Kellogg's ratings are as follows:

Kellogg Company:

--Long-term Issuer Default Rating (IDR) at 'BBB+';

--Senior unsecured debt at 'BBB+';

--Bank credit facility at 'BBB+';

--Short-term IDR at 'F2';

--Commercial paper at 'F2'.

Kellogg Europe Company Limited (KECL):

--Long-term IDR at 'BBB+';

--Short-term IDR at 'F2';

--Commercial paper at 'F2'.

Kellogg Holding Company Limited:

--Long-term IDR at 'BBB+';

--Short-term IDR at 'F2';

--Commercial paper at 'F2'.

Total debt at Dec. 29, 2007 was $5.2 billion, including $1.4 billion of commercial paper.

The company intends to use the net proceeds to repay a portion of its outstanding U.S. commercial paper. The proposed notes contain Change of Control language. Upon the occurrence of both a Change of Control and ratings downgrades below investment grade, unless Kellogg exercises its right to redeem the notes, the company will be required to make an offer to purchase the notes at a price equal to 101% of the aggregate principal amount plus accrued and unpaid interest. The notes will be issued under the company's indenture dated March 15, 2001, as supplemented by supplemental indenture No. 1 dated March 29, 2001. The indenture contains limitations on incurring secured debt and entering into certain transactions; however, there are no financial covenants.

For additional information see Fitch's press release dated Feb. 29, 2008 titled 'Fitch Affirms Kellogg's IDR at 'BBB+'; Outlook Positive' on the Fitch Ratings web site at www.fitchratings.com.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
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Publication:Business Wire
Date:Mar 3, 2008
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