OMS LLP downgrades Nestle to BB+

nestle-logo-googleOMS downgrades Nestle to BB+; cites strategic incoherence, sub-optimal value realization from human capital and high material risk arising from poor Human Governance


London, 9 February 2016: OMS LLP announced today that it has downgraded Nestle to BB+ on its OMR Human Governance rating scale. Paul Kearns, Senior Partner OMS LLP says:

“After initiating coverage in November 2015, we view that Nestle’s initial rating of BBB- is no longer appropriate. The company has further exhibited strategic incoherence and has failed to recognize significant opportunities arising from the management of its human capital. For example, its so called “Shared Value” initiative is not causally linked to value creation and strongly indicates a shortfall between the rhetoric and reality of its human capital management and misalignment with business planning. It also continues to manifest significant risk from key areas of its business such as human rights issues within its supply chain”

A full OMS LLP research note for Nestle is available here



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