Sweden-based industrial machinery manufacturer Sandvik AB's operating profit and cash generation have improved significantly recently thanks to a sharp rebound in its end markets and substantial cost cutting. We believe that a continuation of positive unit volume sales will help the company to generate strong cash flow thus supporting its credit metrics. We are raising our long-term corporate credit ratings on Sandvik to 'BBB+' from 'BBB' and affirming the 'A-2' short-term rating. The stable outlook reflects our expectations of continued recovery in Sandvik's end-markets as well as the company's strong cash flow generation and sustained focus on debt reduction. On May 24, 2011, Standard&Poor's Ratings Services raised its long-term corporate credit ratings on Sweden-based industrial machinery manufacturer Sandvik
