Moody's may cut Wrigley

Moody's Investors Service said it placed the A1 senior unsecured debt rating, Prime-1 short-term rating and prospective ratings on the multi-security shelf registration of the Wm. Wrigley Jr. Co. under review for possible downgrade following the company's announcement that it has reached an agreement to merge with Mars, Inc.

The transaction, which is subject to shareholder and regulatory approval, is expected to close in six to 12 months and result in Wrigley becoming a privately held subsidiary of Mars, Moody's said.

The review for downgrade reflects Moody's expectation that the partially debt-financed transaction will likely result in a weaker credit profile at Wrigley as a subsidiary of Mars.

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