The ratings on International Flavors&Fragrances Inc. (IFF) reflect the company's position as a 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 IFF'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 company has achieved a leadership position within the industry through its R&D investment (which is about 8% of revenue). R&D expertise is a significant barrier to entry within the flavors and fragrances industry, as products are largely custom made for customers, with IFF retaining ownership of internally
