LONDON (Standard&Poor's) May 11, 2005--Standard&Poor's Ratings Services said today it raised its long-term corporate credit rating on Dutch diversified technology group Koninklijke Philips Electronics N.V. (Philips) to 'A-' from 'BBB+', reflecting improvements in the group's business risk profile and solid consolidated financial performance leading to modest financial risk and improved underlying profitability. The outlook is stable. At the same time, Standard&Poor's raised its senior unsecured debt rating on Philips to 'A-' from 'BBB+' and affirmed the 'A-2' short-term corporate credit rating. Philips' total lease-adjusted debt at March 31, 2005, was €5.1 billion. The rating actions are driven by the incremental improvement in Philips' strong business profile. A larger portion of earnings now come from
