Moody's still may cut PepsiCo, lift Pepsi Bottling

Moody's Investors Service said that the reviews of PepsiCo's long-term Aa2 ratings for possible downgrade, Pepsi Bottling Group's long-term A2 for possible upgrade and PepsiAmerica's Baa1/P-2 ratings for possible upgrade, all of which were initiated on April 20, after PepsiCo's unsolicited bid for the bottlers, are continuing following the announcement of a merger agreement between the three parties for a total of $7.8 billion in cash and stock.

The last rating action for PepsiCo was on June 26, when Moody's said it assigned an Aa2 rating (on review for downgrade) to the company's new 364-day revolving bank facility.

The last rating action for both Pepsi Bottling and PepsiAmerica was on April 20, when the bottlers ratings were placed on review for upgrade following PepsiCo's bid, the agency added.

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