Jun. 3 at 8:50 PM
S&P Global Ratings upgraded International Flavors & Fragrances to BBB from BBB- and raised its short-term rating to A-2, citing sustained leverage near or below 3x EBITDA following the sale of its Pharma Solutions business. The agency assigned a stable outlook.
IFF plans to use part of the estimated
$3.8 billion in proceeds from its Food Ingredients divestiture to reduce debt, supporting its long-term leverage target of 2.5x. S&P expects annual free operating cash flow above
$650 million, allowing the company to fund dividends while maintaining leverage discipline.
The ratings agency forecasts modest 1% organic sales growth in 2026, with growth improving toward IFF’s long-term 3%-4% target after the divestiture closes. EBITDA margins are expected to remain around 20% in the near term and expand further as the business becomes more focused on higher-margin segments.
$IFF