PepsiCo currently holds an "A1" long-term local currency credit rating from Moody's Investors Service, with a stable outlook.
Understanding PepsiCo's Credit Rating
Moody's Investors Service is a leading provider of credit ratings, research, and risk analysis. A credit rating assesses a company's ability to meet its financial obligations. For PepsiCo, an "A1" rating signifies a strong credit profile.
Key Details of PepsiCo's Moody's Rating:
| Rating Agency | Entity | Rating Type | Rating | Outlook | Last Affirmed Date |
|---|---|---|---|---|---|
| Moody's Investors Service | PepsiCo, Inc. | Long-Term Local Currency Credit Rating | A1 | Stable | June 20, 2024 |
What Does "A1" Mean?
Moody's "A" ratings are considered upper-medium-grade and subject to low credit risk. Within the "A" category, "A1" is the highest, indicating a very strong capacity to meet financial commitments. This reflects PepsiCo's robust financial health, diverse product portfolio, strong market position, and consistent cash flow generation, which contribute to its low credit risk profile.
A "stable" outlook indicates that Moody's does not foresee any material changes to PepsiCo's creditworthiness in the near future. This suggests consistency in the company's operational performance and financial strategy.
This rating is crucial for various stakeholders:
- Investors: It helps investors assess the risk associated with PepsiCo's debt instruments, influencing bond yields and investment decisions.
- Lenders: Banks and other financial institutions use these ratings to determine lending terms and interest rates.
- Management: The rating reflects the company's financial discipline and strategic effectiveness.
