NEW YORK (Standard&Poor's) Feb. 17, 2004--Standard&Poor's Ratings Services said today that the proposed offering by Arrow Electronics Inc. (BBB-/Negative/A-3) of 12 million shares of common stock would not currently affect its ratings or outlook on the company. Arrow is expected to use the majority of the approximately $300 million in proceeds to reduce outstanding debt. However, pro forma net debt (adjusted for capitalized operating leases and expected debt reductions) to EBITDA-–at about 4x–-remains high for the rating level. Continued improvements in operating profitability, combined with additional debt reductions could lead to a stable outlook for Arrow over the near-to-intermediate term. The current rating incorporates the expectation that earnings and debt protection metrics will continue to improve
