Netherlands-based diversified technology group Koninklijke Philips Electronics N.V.'s preliminary full-year 2011 results are in line with our expectations. However, the ratio of funds from operations to debt is lower than expected due to increased pension obligations following a sharp decline in reference interest rates at the end of 2011. We have revised the outlook to negative from stable. We are affirming our 'A-/A-2' long- and short-term issuer credit ratings. The negative outlook reflects the possibility that in the next few quarters Philips' financial measures could deteriorate such that they are no longer commensurate with the current ratings. On Feb. 3, 2012, Standard&Poor's Ratings Services revised its outlook on Netherlands-based diversified technology group Koninklijke Philips Electronics N.V. (Philips) to
