The ratings on Plano, Texas-based Dr Pepper Snapple Group Inc. (DPS) reflect Standard&Poor's Ratings Services' assessment of the company's "satisfactory" business risk profile (as defined in our criteria). Key credit factors considered 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. We believe the company's financial risk profile is "intermediate," reflecting its 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
