The ratings on Plano, Texas-based Dr Pepper Snapple Group Inc. (DPS) reflect Standard&Poor's Ratings Services' assessment of the company's business risk profile as "satisfactory" and financial risk profile as "intermediate." Key credit factors in our assessment include DPS' position as the third-largest soft drink company in North America, good brand recognition and cash flow generation, yet relatively narrow business and geographic focus, with the majority of its footprint in the mature and low-growth nonalcoholic beverage markets of North America. The company has a moderate financial policy, adequate liquidity, and key credit measures that we believe will remain consistent with indicative ratios for an intermediate financial risk profile. DPS is a leading integrated-brand owner, bottler, and distributor of nonalcoholic
