LONDON (Standard&Poor's) May 12, 2005--Standard&Poor's today published a report further clarifying its reasons for its upgrade of Netherlands-based diversified technology group Koninklijke Philips Electronics N.V. (Philips; A-Stable/A-2) on May 11, 2005 (see "Research Update: Philips Electronics Rating Raised To 'A-' On Improved Underlying Profitability; Outlook Stable" on RatingsDirect, Standard&Poor's Web-based credit analysis system). Specifically, the report addresses the following questions: -- In July 2003, Standard&Poor's lowered the ratings on Philips to 'BBB+'. What has changed since then and can you summarize the key reasons for the upgrade? -- Would the ratings on Philips be lowered if it executed a large cash-financed acquisition in the medical equipment sector? -- Would the ratings on
