Diversified product offerings; Strong market positions and brand names; Solid cash flow; and Growing geographic 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 Aggressive financial policy, including history of sizable share repurchases. The 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. The company's somewhat aggressive financial policies, including its active share repurchase and acquisition program, have led to higher debt levels, partially offset those strengths. PepsiCo is the world's second-largest
