...NEW YORK (S&P Global Ratings) April 27, 2017--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, likely in three tranches but final amounts to be determined. PepsiCo has indicated it plans to use the net proceeds from this offering for general corporate purposes, including the repayment of commercial paper. 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. This includes debt at certain operating entities albeit steadily declining and now below 5% of consolidated debt. 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 35%. However, we believe the group's established...
