Nestle Rating Leaves Room for $5.2 Billion of Acquisitions: S&P

Nestle SA (NESN), the world’s biggest food company, has room to spend more than 5 billion Swiss francs ($5.2 billion) on acquisitions under its current credit rating, according to Standard & Poor’s.

Debt-financed purchases beyond that amount could put the Vevey, Switzerland-based company’s AA long-term debt rating at risk, S&P said today, though it expects the DiGiorno pizza maker to spend only about 2 billion francs a year on acquisitions.

Nestle is “highly cash-generative” and has a “conservative financial policy,” said S&P, which assesses the outlook for the debt rating to be stable.

The maker of Nescafe soluble coffee last year bought Pfizer Inc.’s baby-food business for $11.9 billion.

AA is the third-highest credit rating on S&P’s scale, and Moody’s Investors Service rates Nestle debt Aa2.

To contact the reporter on this story: Thomas Mulier in Geneva at

To contact the editors responsible for this story: David Risser at; Celeste Perri at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.