Fitch rates PepsiAmericas notes A

Fitch Ratings said it assigned an A rating to the proposed five-year senior unsecured notes of PepsiAmericas, Inc.

The company has long-term issuer default rating, bank credit facility and senior unsecured debt at A, and its short-term issuer default rating and commercial paper at F1.

The outlook is stable.

Proceeds will be used to repay commercial paper. In the interim, the proceeds may be invested in short-term instruments, and excess proceeds will be used for general corporate purposes.

For the year ended Dec. 31, total debt-to-operating EBITDA ratio was 3.3 times.

While PepsiAmericas' credit metrics are weaker than similarly rated food and beverage companies, its ratings are reflective of the credit metrics of the Pepsi system and PepsiAmericas' relative importance in that system, which comprises PepsiCo, Inc. (AA- issuer default rating) and its significant, strategic bottlers, Pepsi Bottling Group, Inc. (A+ issuer default rating) and PepsiAmericas, according to the agency.

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