Moody's rates PepsiCo bonds Aa3

Moody's Investors Service said it assigned Aa3 ratings to PepsiCo's new three-year, 10-year and 30-year bonds and a provisional Aa3 rating for senior unsecured drawings.

The agency also said it assigned Aa3 ratings to the company's existing senior unsecured bank facilities.

The outlook is negative.

Moody's said the ratings reflect 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 historically stable financial performance.

These factors are offset by continued cost headwinds and by leverage that is expected to be materially higher than anticipated, the agency said.

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