AAA for effort

20 October 2005 By John Foley Follow @johnsfoley

The Swiss food giant is performing well across the board even in the US, where Cadbury and Kraft are struggling. A fresh buyback is a positive step too. But Nestle could do more if only it could be persuaded to part with its prized tripleA rating.

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Nestle reported likeforlike sales growth of 5.8% for the first nine months of 2005, compared with the same period in 2004. Strong performances came from the Swiss food giant's American business, which grew 7.3%, and Asia, Oceania and Africa, which grew 8.4%.

Nestle is the world's only food company to hold a tripleA credit rating from both Standard & Poor's and Moody's.

Earlier this year, Nestle was criticised by shareholders for its decision to let chief executive Peter Brabeck assume the chairmanship as well. However, Nestle shareholders eventually voted to approve the move. Outgoing chairman Rainer Gut indicated that Brabeck's double mandate "could last around two to three years", the Wall Street Journal reported.

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