The ratings on Nestlé S.A. and its related entities reflect the group's leading position worldwide in the stable, cash-generative branded- and packaged-food industry; very strong brands; extremely diversified product portfolio; leading market shares worldwide in most product lines; and extensive geographic diversification. Nestlé's financial profile has declined steeply following the 2001 $11.7 billion cash acquisition of U.S. pet-food manufacturer Ralston Purina Co. Management is committed to rapidly restoring debt measures to very strong historical levels, however, thanks to the group's superior cash flow generation. With sales of Swiss franc (SFr) 21.3 billion ($13.3 billion) in first-quarter 2002, Nestlé is the largest player worldwide in the branded- and packaged-food industry. Although the sector is stable and cash generative, it is facing
