S&P: Pepsi unaffected

Standard & Poor's said ratings and outlook on PepsiCo Inc. (A+/stable/A-1), Pepsi Bottling Group Inc. (A/stable/A-1) and PepsiAmericas Inc. (A/stable/A-1) would be unaffected by the announcement that PepsiCo will increase its 2008 share repurchases by $1 billion for a total of $5.3 billion.

The agency said it believes credit measures will remain strong and consistent with system credit rating benchmarks, based on recent earnings releases and despite concerns about higher commodity costs amid weak liquid refreshment beverage category trends in the key North American market.

System benchmarks include a total debt-to-EBITDA ratio in the 1.5 times to 2 times range.

If the system's operating performance weakens during the key third quarter, however, and system benchmarks are not met, the agency said it would consider revising the outlook to negative.

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