PepsiCo, Inc.: Rating Report

DBRS Limited (DBRS) confirmed the Issuer Rating and Senior Unsecured Debt rating of PepsiCo, Inc. (Pepsi or the Company) at A (high) and Pepsi’s Short-Term Issuer Rating at R-1 (low), all with Stable trends. DBRS also discontinued and withdrew Pepsi Bottling Group, Inc.’s (PBG) Senior Unsecured Debt rating, as Pepsi tendered or exchanged a substantial portion of the PBG notes outstanding in Q4 2018, such that the remainder is immaterial. The confirmations are based on Pepsi’s relatively stable earnings and financial profiles in the last 12 months (LTM) ended Q3 F2018. The ratings continue to be supported by Pepsi’s strong brands and solid market positions, its product and geographic diversification and its free cash flow-generating capacity. The ratings also consider the intense competitive environment, mature nature of certain markets and product categories.