... Nestle SA's 'AA+' ratings reflect operations in a sector characterised by high business stability, and low capex and R&D spending requirements compared with other highly rated companies. Furthermore, within its industry Nestle benefits from a portfolio in several high profit margin categories, the ownership of some of the strongest brands, as well as from consistent and successful innovation. Superior Sales Growth: Volume and pricing have consistently contributed to revenue growth, and profit margins have improved. It maintained healthy organic sales growth of 4.6% in 2013 and 4.7% in 1H14. Fitch Ratings expects Nestle to continue its strong performance and to deliver organic growth of around 5% for 2014. Growth will be driven by both volume and pricing, supported by Nestle's ability to innovate, to cut costs and to improve efficiencies. L'Oreal Transaction and M&A: Historically, Fitch has not considered Nestle's stake in L'Oreal as cash for...
