The ratings on New York City-based International Flavors&Fragrances Inc. (IFF) reflect Standard&Poor's Ratings Services' view of the company's satisfactory business and intermediate financial profiles. IFF's satisfactory business profile reflects its global, strong presence in the flavor and fragrance industries, solid global client base, and good portfolio diversification (25% of revenues come from North America, while more than 45% come from emerging markets). The company also benefits from positive growth fundamentals for emerging economies, partly stimulated by IFF's ongoing innovation in its portfolio, with about 8% of net revenues invested in research and development (R&D) annually. Partly offsetting the positives are the company's high exposure to volatile commodity prices, which constitutes about half of its cost structure
