Fitch rates PepsiCo notes A+

Fitch Ratings said it assigned an A+ rating to PepsiCo, Inc.'s new $500 million three-year 0.8% and $750 million 10-year 3% senior unsecured notes.

The outlook is negative.

The notes will rank equally with PepsiCo's senior unsecured obligations, Fitch said.

The proceeds will be used for general corporate purposes.

PepsiCo's leverage is currently above expectations for the A+ rating, which is the reason for the negative outlook, the agency said.

Fitch said it recognizes PepsiCo has significant financial flexibility due to its substantial cash flows, but the company's commitment to share repurchases and continuing acquisitions may require further debt-financing.

The ratings also consider the company's diverse food and beverage product mix, comprehensive geographic footprint and ability to consistently generate substantial operating cash flow, the agency said.

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