On Feb. 11, 2003, Standard&Poor's Ratings Services affirmed its 'A-' long-term and 'A-2' short-term corporate credit ratings on Dutch diversified technology group Koninklijke Philips Electronics N.V. (Philips). The outlook remains negative. The affirmation, which follows the publication of fourth-quarter and full-year 2002 results, primarily reflects continued debt reduction--through operating cash flow generation, working-capital management, and minor asset sales over the past year--most notably in fourth-quarter, when the group reduced debt by approximately €1.7 billion. Although profitability and ongoing restructuring remain Philips' chief recurring weakness, Standard&Poor's acknowledges the efforts of the group's management over the past year to focus primarily on cash flow generation, resulting in a 30% reduction in net debt since year-end 2001--despite very weak
