Diverse and complementary product offerings; Strong market positions and brand names; Solid cash flow; and Geographic diversification. Highly competitive nonalcoholic beverage, snack, and cereal markets (especially in the U.S.); Exposure to volatile commodity and foreign currency exchange rates; and Aggressive financial policy, including history of sizeable share repurchases. Standard&Poor's Ratings Services' ratings on Purchase, N.Y.-based PepsiCo Inc. continue to reflect our assessment of the company's business risk profile as "excellent" and financial risk profile as "intermediate" (as defined in our criteria). Key credit factors considered in our business risk assessment include its balanced portfolio of businesses, with its strong positions and well-known brands in the relatively stable, cash-generating liquid refreshment beverage and snack food industries, and geographic diversification.
