The ratings on Nestlé S.A. and its related entities reflect the group's leading position worldwide in the stable and cash-generative branded- and packaged-food industry, very strong brands, extremely diversified product portfolio, leading market shares in most product lines, and extensive geographic diversification. Nestlé's financial profile is projected to decline steeply following the $11.7 billion cash acquisition of U.S. pet-food manufacturer Ralston Purina Co., which is expected to be completed in the second half of 2001. Management is, however, committed to rapidly restoring debt measures to very strong historical levels, thanks to the group's superior cash flow generation. With first-half 2001 sales of Swiss franc (SFr) 41.2 billion ($24.7 billion), Nestlé is the largest player worldwide in the branded- and packaged-food
