Standard&Poor's Ratings Services' ratings on Purchase, N.Y.-based PepsiCo Inc. continues to reflect our view of the company's excellent business risk assessment, stemming from the company's position as one of the world's largest food and beverage companies. In our view the company has a balanced portfolio of businesses with strong positions and well-known brands in the relatively stable, cash-generating soft drink and convenient food industries, and geographic diversification. The ratings also reflect our opinion of the company's intermediate financial risk profile, partially offsetting those strengths. We believe PepsiCo's financial policies, including its active share repurchase and acquisition program, are somewhat aggressive and have led to higher debt levels. PepsiCo is the world's second-largest manufacturer of soft drink concentrates and
