First-half 2013 results for Dutch diversified technology group Philips show an improved operating margin thanks to costs savings, and the group no longer operates in the TV, audio, video, and multimedia businesses. We believe that for full-year 2013, Philips should be able to continue improving its operating margin from the weak 2012 level and generate free operating cash flow. We are therefore revising our outlook on Philips to stable from negative and affirming our 'A-/A-2' long- and short-term ratings on the group. The stable outlook reflects our opinion that Philips will maintain credit ratios in line with its modest financial risk profile and steadily improve its operating margin. MILAN (Standard&Poor's) July 24, 2013--Standard&Poor's Ratings Services said
