The ratings on Switzerland-based Nestlé S.A. and its related entities, the largest player worldwide in the stable and cash-generative branded and packaged food industry, reflect the group's excellent business profile, strong geographic diversification, very robust free cash flow generation and strong financial flexibility, as well as its strong financial profile, although the latter is less conservative than in the past. Nestlé recently announced a Swiss franc (CHF)25 billion ($21.4 billion) share buyback program while it is already engaged in substantial acquisitions. Therefore, despite likely strong free cash flow generation, Nestlé's new financial policy will translate into a more aggressive financial profile than in recent years. Notably, adjusted funds from operations (FFO) to debt will fall well below the level of
