MILAN (Standard 6 Poor's) Oct. 30, 2006--Standard&Poor's Ratings Services said today that it has placed its 'A' long-term and 'A-1' short-term corporate credit ratings on France-based Schneider Electric S.A.--a major world player in electrical distribution, industrial control, and automation--on CreditWatch with negative implications. The rating action follows Schneider's €4.8 billion ($6.1 billion) bid for 100% of American Power Conversion (APC). "Success in acquiring APC would increase Schneider's debt levels by an expected €3.2 billion, resulting in a financial profile more commensurate with a rating in the 'BBB' category," said Standard&Poor's credit analyst Barbara Castellano. "We would expect funds from operations to adjusted debt to deteriorate significantly below the 40% minimum level for the current ratings." Standard
