S&P: Pepsi unaffected

Standard & Poor's said there would be no effect on the ratings or outlook on PepsiCo Inc. (A+/stable/A-1), Pepsi Bottling Group Inc. (A/stable/A-1) and PepsiAmericas Inc. (A/stable/A-1) following the announcement that PepsiCo and Pepsi Bottling have agreed to jointly acquire a 75.53% stake in JSC Lebedyansky.

In accordance with local law and shortly after the deal, PepsiCo and PBG will make a mandatory offer to purchase the remaining shares, according to the agency.

The acquisition will provide the companies with a strong platform for continued expansion in the Russian juice market, S&P noted.

Pepsi group's liquidity is good and credit measures very strong for the rating, the agency said. Following the deal and despite increased share buybacks at PepsiCo, consolidated debt protection measures are consistent with Pepsi rating benchmarks, the agency said.

System benchmarks include a total debt-to-EBITDA ratio between 1.5 times and 2 times.

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