(The following statement was released by the rating agency)
Nov 30 -
Summary analysis -- Schneider Electric S.A. ----------------------- 30-Nov-2012
CREDIT RATING: A-/Stable/A-2 Country: France
Primary SIC: Electrical
Mult. CUSIP6: 806879
Mult. CUSIP6: 80687P
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
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.