PARIS (Standard&Poor's CreditWire) July 17, 2001--Standard&Poor's today affirmed its single-'A'-minus long-term corporate credit and senior unsecured debt ratings and 'A-2' short-term corporate credit and commercial paper ratings on Netherlands-based Koninklijke Philips Electronics N.V. (Philips). The affirmation is in response to the company's announcement today of a €770 million net loss in its second quarter, as well as its announcement on July 4, 2001 of its agreement to acquire Marconi PLC's medical systems division for $1.1 billion in cash. The outlook remains stable. Although the sharply deteriorated conditions in Philips' main markets, coupled with the current restructuring of its mobile telecommunications and component divisions, will have a dramatic impact on the group's profitability and debt-coverage measures, Standard
