Our ratings on Purchase, N.Y.-based PepsiCo Inc. continue to reflect its balanced portfolio of businesses, with its strong positions and well-known brands in the relatively stable, cash-generating soft drink and snack food industries, and geographic diversification. These strengths are partially offset by the company's somewhat more aggressive financial policies, including its active share repurchase and acquisition program, which have led to higher debt levels. PepsiCo is the world's second-largest manufacturer of soft drink concentrates and syrups, and holds the No. 1 position in the U.S. in the snack food market and several segments of the noncarbonated beverage category. PepsiCo also has a competitive position in the hot and cold cereal markets. The company's excellent business profile is supported by 19
