Diversified product offerings; Strong market positions and brand names; Solid cash flow; and Growing international contribution. Highly competitive beverage, snack and cereal markets (especially in U.S.); Exposure to volatile commodity costs and foreign currency exchange rates; Realizing the expected benefits from integrating PBG and PAS; and More aggressive financial policy, including a sizable share repurchase program that is expected to lead to weaker credit measures. Our ratings on Purchase, N.Y.-based PepsiCo Inc. continue to reflect its balanced portfolio of businesses, with its strong positions and well-known brands in the relatively stable, cash-generating soft drink and snack food industries, and geographic diversification. These strengths are partially offset by the company's somewhat more aggressive financial policies, including its active share repurchase and
