The ratings for International Flavors&Fragrances Inc. (IFF) reflect the company's position as the leading global creator and manufacturer of flavors and fragrances, and its geographic diversity with about 68% of revenue and over 75% of operating profit generated outside North America. These factors are partially offset by the company's more aggressive financial policy and weaker credit protection measures since the November 2000 acquisition of U.S.-based Bush Boake Allen Inc. (BBA). Additionally, there is a degree of integration risk associated with the acquisition, given its large size in relation to IFF. The acquisition of BBA has augmented IFF's R&D capabilities -- an important competitive strength. The company has achieved a leadership position within the industry through its R&D investment
