Top-tier position in global components distribution industry (along with Avnet Inc.); Geographic and customer diversity; Successful employment of acquisitions in a consolidating industry; and Moderate, but increasing (because of consolidation) barriers to entry. Highly competitive, relatively low value-added industry; and Variable profitability because of volatility in industry demand. The rating on Englewood, Colo.-based Arrow Electronics Inc. reflects the company's "satisfactory" business risk profile and "intermediate" financial risk profile (based on Standard&Poor's Ratings Services' criteria) in the face of challenging macroeconomic industry conditions. The electronic distribution industry's highly competitive and relatively low-margin characteristics, as well as the potential for variable profitability and debt protection metrics resulting from volatile industry demand offset company strengths. Arrow is one of the leading
