Bulletin: Nestlé S.A. Ratings Can Absorb Announced Share Buyback Program Of Up To CHF20 Billion

PARIS (S&P Global Ratings) Oct. 17, 2019--S&P Global Ratings today said it believes global food and beverages group Nestlé S.A. retains sufficient rating headroom to absorb the announced new share buyback program, with adjusted debt leverage forecast to remain at 1.8x-2.0x in 2020-2021. On Oct. 17, 2019, Nestlé announced its intention to redistribute to shareholders up to 20 billion Swiss francs (CHF) of cash over the next three years. It will fund about half of this with CHF 10.2 billion of cash proceeds from the sale of Nestlé Skin Health (with main brand Galderma), which it sold to a consortium led by Abu Dhabi Investment Authority (ADIA) and private equity firm EQT two weeks ago. We believe Nestlé can fund

...October 17, 2019 PARIS (S&P Global Ratings) Oct. 17, 2019--S&P Global Ratings today said it believes global food and beverages group NestlT S.A. retains sufficient rating headroom to absorb the announced new share buyback program, with adjusted debt leverage forecast to remain at 1.8x-2.0x in 2020-2021. On Oct. 17, 2019, NestlT announced its intention to redistribute to shareholders up to 20 billion Swiss francs (CHF) of cash over the next three years. It will fund about half of this with CHF 10.2 billion of cash proceeds from the sale of NestlT Skin Health (with main brand Galderma), which it sold to a consortium led by Abu Dhabi Investment Authority (ADIA) and private equity firm EQT two weeks ago. We believe NestlT can fund the rest with its strong cash flow capacity. The company's operating performance should continue to benefit from growth prospects thanks to its expansion in high growth categories like pet care and coffee, and increasing penetration in in Asia. Profitability should...

Bulletin