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 almost 70% of revenues and more than 75% of operating profits 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). 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 (which is 7% to 8% of revenue). R&D expertise is a significant barrier to entry within the flavors and fragrances industry,
