PARIS (Standard&Poor's) June 17, 2002--Standard&Poor's said today that it has affirmed its triple-'A' long-term and 'A-1'-plus short-term ratings on Switzerland-based food group Nestlé S.A., following the announcement of a proposed merger of the group's U.S. ice-cream operations with Dreyer's Grand Ice Cream, Inc. The outlook is negative. The merger with Dreyer, a leading U.S. ice-cream company, would result in Nestlé's owning 67% of the combined company. The transaction is subject to approval by the relevant competition authorities. "The ratings affirmation reflects the significant strengthening of Nestlé's position in ice cream in the U.S., boosting its cash flow generation with no immediate cash outflow," said Standard&Poor's credit analyst Hughes de La Presle. "In addition, the
