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) Aggressive financial policy for the rating level The ratings on 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 operations, and special steel products. At Dec. 31, 2006, Sandvik had adjusted interest-bearing debt of about SEK19.47 billion ($2.6 billion) including
