...First Time Ratings: The ratings reflect Atlas Copco AB's (Atlas) strong and well-diversified business profile with market and technological leadership and global presence in many industrial segments, which offsets its exposure to the cyclical end-markets of some of its customers. The strength of the business is mirrored by the solid and stable financial profile, which displays many aspects of a strong `A' category diversified manufacturing company. Strong Business Profile: The group demonstrated through the last recession the smoothing benefit of its diversification, which gives confidence that ratios are likely to remain relatively stable through the medium term despite the volatility in some of its customer markets. Stable Cash Generation. The company's funds from operations (FFO) margin, at 15% in 2014, is strong for the 'A' category. Cash from operations is more volatile owing to sometimes large working-capital swings, chiefly in relation to inventory. Depending on working-capital cash...
