Bangkok--2 Aug--Moody's Investors Service Moody's Investors Service sees a mixed rating outlook for the consumer products sector in Asia Pacific (excluding Japan) in the year ahead. Authored by Moody's Senior Analyst Renee Lam in Hong Kong and Analyst Peter Fullerton in Sydney, the report says that Moody's mixed outlook is based on three key factors: event risk from acquisitions or diversification strategies, the challenge of growing revenue in mature markets, and, to a lesser degree, the effect of sustained high input costs. "For many regional consumer products companies, their core product market is largely mature, and they find it hard to grow revenue strongly as a result," says Lam in the report. "To enhance revenue, many companies have adopted acquisitive growth strategies, but these often pose execution risks, particularly for companies with less financial discipline," she adds. "Continued high or increasing costs for many inputs, especially sugar and aluminum, have pressured operating margins for some companies, and when a significant portion of a producer's raw materials are imported, it is vulnerable to margin squeeze both from raw material price increases and currency fluctuations," continues Fullerton. "However, in some cases, a company's high degree of business diversification has helped it maintain relatively stable overall profit margins," he says. Another challenge for the sector is the emergence of health consciousness in some markets, and a heightened regulatory environment, including tighter sanitary measures for many products and raw ingredients, due to increased concerns about infectious and other diseases. The report -- 'Industry Snapshot: Asia Pacific Consumer Products Sector' -- is part of Moody's Industry Snapshot series, which offers succinct and incisive looks at particular sectors, and can be found at www.moodys.com. Sydney Peter Fullerton Asst Vice President - Analyst Corporate Finance Group Moody's Investors Service Pty Ltd JOURNALISTS: (612) 9270-8102 SUBSCRIBERS: (612) 9270-8100 Hong Kong Renee Lam Vice President - Senior Analyst Corporate Finance Group Moody's Asia Pacific Ltd. JOURNALISTS: (852) 2916-1150 SUBSCRIBERS: (852) 2916-1121