The ratings on New York, N.Y.-based 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 about 75% of revenues outside North America. These factors are partially offset by the company's more aggressive financial policy and weaker credit protection measures since the 2007 accelerated share repurchase. Although competition is intense for new flavor and fragrance development, and the application of these technologies, IFF has achieved a leadership position in the industry through its research and development (R&D) expertise (about 8%-9% of revenues). R&D is a significant barrier to entry in the flavors and fragrances industry, because products are largely custom-made for customers, and IFF
