...NEW YORK (S&P Global Ratings) Oct. 3, 2016--S&P Global Ratings today assigned its 'A' issue-level rating to Purchase, N.Y.-based food and beverage company PepsiCo Inc.'s proposed senior unsecured notes, final amounts to be determined. PepsiCo has indicated that it plans to use the net proceeds from this offering for general corporate purposes, including the possible redemption of its 7.9% notes due 2018 and 5.125% senior unsecured notes due 2019 (issued by Pepsi Bottling Group Inc.) 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 the group's cash flow and represent a significant portion of adjusted assets, and do not guarantee the holding company's senior unsecured debt. We estimate the ratio of priority obligations to adjusted assets to be roughly 36%. However, we believe the group's established brand portfolio,...
