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 worldwide in most product lines, and extensive geographic diversification. Nestlé's financial profile is, however, currently weak for the ratings, following a string of acquisitions, especially that of U.S. pet-food manufacturer Ralston Purina Co. for $11.7 billion in cash in 2001. The group's debt measures are expected to recover to very strong historical levels, however, no later than the end of the first half of 2004, as a result of its superior cash flow generation and some divestments. With sales of Swiss franc (SFr) 44.2 billion ($29.5
