Purchase, N.Y.-based PepsiCo Inc. has entered into definitive merger agreements with its two largest anchor bottlers to acquire all of their outstanding shares of common stock that it does not already own. If completed as described, we estimate that pro forma Pepsi system credit measures will weaken to the low end and/or outside of our current benchmarks. We revised our outlook on PepsiCo Inc. to negative following the announcement. Our ratings for Pepsi Bottling Group Inc. and PepsiAmericas remain on CreditWatch with positive implications. On Aug. 5, 2009, Standard&Poor's Ratings Services revised its outlook on Purchase, N.Y.-based PepsiCo Inc. to negative from stable. At the same time we affirmed our ratings on PepsiCo, including our 'A+' long-term corporate
