Good market positions in some segments Long relationships with OEMs High debt leverage A significantly larger competitor Some sales concentration The rating reflects SRAM LLC's high debt leverage, limited liquidity, and risks relating to its sales concentration in the midrange to high-end bicycle market, which faces prospects of slowing growth. The company's good market positions in some segments of the bicycle components market and its long-term, nonexclusive relationships with the major bicycle original equipment manufacturers (OEMs) only partially offset these factors. The company is a distant second in the highly competitive bicycle components market. Market share is roughly one-third of market leader Shimano Inc., which has stronger brand recognition, product development ability, and profitability, as well as much lower financial
