The ratings on Dutch beverage producer Refresco Group B.V. primarily reflect Standard & Poor's Ratings Services' view of the company's aggressive financial risk profile and debt leverage. They also incorporate our opinion of Refresco's limited pricing power, in particular given its high exposure to raw material price fluctuations. These factors are partially mitigated by Refresco's large scale of operations and its competitive cost structure supporting its No. 1 position in the European private-label soft drinks market; the favorable growth prospects for Refresco's product categories; and its positive free cash flow generation capacity. Refresco successfully maintained positive like-for-like volume growth in recent years, but selling prices came under pressure in 2009 and 2010. We believe that Refresco should be able to...
Companies mentioned in this report are: Refresco Group B.V.
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