On July 26, 2002, Standard&Poor's Ratings Services placed its ratings on Arrow Electronics Inc. on CreditWatch with negative implications. The CreditWatch listing reflected Standard&Poor's concerns about Arrow's ability to achieve significant near-term improvement in earnings and debt protection metrics given weak economic and industry conditions. Melville, N.Y.-based Arrow is one of the leading global electronic components and computer products distributors. However, economic weakness and reduced levels of technology spending resulted in steep revenue and earnings declines over the past 18 months, particularly in the electronic components sector. Arrow reported a 22% decline in fiscal 2001 revenues, to $10.1 billion, and net income of $77 million, excluding special charges. Effective working capital management enabled Arrow to make
