World-leading position in core businesses. High-quality products and technological leadership. Diversified production and sales, and an increasing share of service and aftermarket sales. Strong cash flow generation and modest capital expenditure needs. Exposure to cyclical demand for products. Exposure to raw-material prices. Relatively high debt levels (including post-retirement liabilities). The ratings on Sweden-based Sandvik AB reflect the company's world-leading position as a cemented-carbide tool supplier to the metalworking industry, as well as its strong financial profile. Sandvik holds strong positions in other niches such as tooling systems for metalworking applications, products for rock-excavation, and special steel products. At year-end 2005, Sandvik had net interest-bearing debt (excluding about Swedish krona {Skr} 3.2 billion of post-retirement liabilities) of about Skr14.1 billion ($1.9
