PARIS (Standard&Poor's) Dec. 14, 2006--Standard&Poor's Ratings Services said today its ratings and outlook on Switzerland-based global food group Nestle S.A. (AAA/Stable/A-1+) are unchanged, following the announcement that it has agreed to acquire the medical nutrition business of Novartis AG (AAA/Stable/A-1+) for a cash consideration of $2.5 billion. Although the acquisition will be debt funded, we expect Nestle's financial profile to remain at all times in line with our minimum expectations for the ratings. In particular, the group needs to maintain adjusted funds from operations to net debt greater than 90%. We expect Nestle to increase its--currently solid--free cash flows from operations; moderate its cash outflows, especially with regard to the amount and pace of its share
