The ratings on Switzerland-based Nestlé S.A. and its related entities reflect the group's superior business profile--as the largest player worldwide in the stable and cash-generative branded and packaged food industry--and cash flow generation, offset by a financial profile that remains currently weak for the ratings. At the end of June 2003, the group had net debt adjusted for operating leases and unfunded postretirement liabilities (and excluding an option pertaining to U.S. ice-cream manufacturer Dreyer's) of about Swiss franc SFr 21 billion ($16 billion). Nestlé boasts an extremely diversified business portfolio. The group enjoys leading market shares worldwide in a large number of categories, in particular instant coffee; bottled water; dairy products (condensed, evaporated, and powdered milk); baby food; ice cream;
