NEW YORK (Standard&Poor's) June 29, 2015--Standard&Poor's Ratings Services today raised its issue-level ratings on PepsiCo Inc.'s senior unsecured debt to 'A' from 'A-', and affirmed the senior unsecured issue-level ratings at its bottling subsidiaries (The Pepsi Bottling Group Inc. and its subsidiaries and PepsiAmericas Inc.). The upgrade reflects our assessment of the group's asset coverage ratio of priority obligations to adjusted assets, which we believe has improved, factoring in additional information regarding brand values not reflected in the group's reported balance sheet. The majority of PepsiCo's senior unsecured debt is issued by the group holding company, PepsiCo Inc., but the group still maintains significant priority obligations at its operating entities. These entities generate virtually all of
