MILAN (S&P Global Ratings) May 7, 2019--S&P Global Ratings today said that Sweden-based Sandvik AB's profitability could rise by about 150 basis points (bps) if the process of separating its Sandvik Materials Technology (SMT) division ends in a proper deconsolidation. The impact would likely be offset by the slight reduction in market diversity. Sandvik's board has resolved to initiate the separation process, potentially by listing SMT on the NASDAQ Stock Exchange in the following year or so. At this stage, we don't expect the separation to shift Sandvik's financial position, and we assume that Sandvik will maintain a very conservative balance sheet. As a whole, our rating on Sandvik (A-/Stable/A-2) is likely to be unaffected by the transaction. With this
