Global reach and wide product diversification combined with a strong brand name, principally in Europe and several world-leading positions; Strong positions in certain stable cash-generative businesses such as medical systems, lighting, and domestic appliances and personal care; and Solid financial flexibility enhanced by a substantial amount of disposable, listed financial assets. Volatile cash flow generation capacity during the upside of the business cycle; Exposure to certain capital-intensive, cyclical sectors such as semiconductors and consumer electronics, whose profitability has not been sufficiently stable; and Inconsistent operating performance in certain divisions and geographical markets, such as U.S. consumer electronics. The ratings on Dutch diversified technology group Koninklijke Philips Electronics N.V. (Philips) reflect its continued stable performance in several core business segments, along
