TEXT-S&P summary: Schneider Electric S.A.

Fri Nov 30, 2012 6:21am EST

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(The following statement was released by the rating agency)

Nov 30 -

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Summary analysis -- Schneider Electric S.A. ----------------------- 30-Nov-2012

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CREDIT RATING: A-/Stable/A-2 Country: France

Primary SIC: Electrical

industrial

apparatus, nec

Mult. CUSIP6: 806879

Mult. CUSIP6: 80687P

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Credit Rating History:

Local currency Foreign currency

26-Nov-2008 A-/A-2 A-/A-2

14-Mar-2007 BBB+/A-2 BBB+/A-2

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Rationale

The ratings on French electrical distributor Schneider Electric S.A. (Schneider) reflect Standard & Poor's Ratings Services' view of the company's "strong" business risk profile and "intermediate" financial risk profile. Schneider's sound competitive positions, extensive geographic diversity, efficient cost management, and ability to generate robust free operating cash flow support the ratings. However, these strengths are tempered by the company's moderate financial policy and, to a lesser extent, our opinion of the cyclical nature of most of Schneider's end markets. We consider that under its financial policy in recent years, Schneider has an appetite for debt-financed acquisitions and has paid out generous dividends.

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