Solid market position in the overall stable flavor and fragrances industry. Good geographic diversity. Track record of stable and consistent profit generation, notwithstanding some volatility in fine fragrances. Exposure to input cost and foreign exchange fluctuations. Financial policy has become less conservative, particularly with respect to potential future acquisitions. Projected credit ratios are still satisfactory, including leverage slightly above 2x and funds from operations (FFO) to debt in the mid-30% area. The stable outlook on New York City-based International Flavors&Fragrances Inc. (IFF) reflects our base-case forecast that credit ratios will weaken over the next two years, primarily as a result of IFF's increased appetite for acquisitions, including leverage in the low-2x area and FFO to debt in the
