Global reach, wide product diversity, a strong brand name, and several world-leading market positions. Strong positions in stable, fairly cash-generative businesses such as medical systems and lighting. Low financial debt. Conservative financial policy. Strong liquidity and financial flexibility. Relatively weak, albeit improving, profitability. Volatile profitability in the seasonal and competitive consumer electronics sector. The ratings on the Netherlands-based diversified technology group Koninklijke Philips Electronics N.V. (Philips) reflect its global reach and wide product diversity. Additional strengths include a strong brand name and several world-leading market positions in relatively stable cash-generative businesses such as medical systems, lighting, domestic appliances, and personal care. From a financial perspective, relatively robust cash generation and low absolute debt levels translate into cash flow debt-protection measures
