Moody's rates PepsiCo bonds Aa3

Moody's Investors Service said it assigned Aa3 ratings to PepsiCo's $2.25 billion bond deal in 3- year, 10-year and 30-year tranches.

The outlook is stable.

The Aa3 long-term rating reflects the company's strong brand franchises in snack foods and beverages, global reach, solid innovation pipelines, efficient operations, and extensive and multifaceted distribution network, as well as its good liquidity and continued solid financial performance, offset by higher leverage after the bottler acquisitions, according to the agency.

While the company has been challenged to achieve volume growth, especially in carbonated soft drinks in mature markets, is has good growth prospects in international markets and continues a strong innovation program, the agency said.

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