S&P rates Dr Pepper Snapple notes BBB-

Standard & Poor's said it assigned a BBB- rating to Dr Pepper Snapple Group Inc.'s $1.7 billion senior note offering and affirmed its BBB- corporate credit rating.

The outlook is negative.

Proceeds from the note offering will help finance the company's planned separation from Cadbury Schweppes plc.

The agency said the ratings reflect Dr Pepper Snapple's position as the third-largest soft drinks company in North America and its good brand recognition and cash flow generation.

However, the company's significant debt levels, its narrow business focus, the challenging industry conditions within the mature and low-growth markets in which it competes and concerns related to its newly independent status offset these positives, in S&P's view.

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