World-leading position in core businesses High-quality products and technological leadership Diversified production and sales, including an increasing share of service and aftermarket sales Cyclical demand patterns for the company's products Exposure to raw material price fluctuations Relatively high debt levels The ratings on Sweden-based tool and mining equipment manufacturer Sandvik AB are supported by company's strong business risk profile, which reflects Sandvik's world-leading position as a cemented-carbide tool supplier to the metalworking industry. It also has strong positions in other niches, such as tooling systems for metalworking applications, products for rock-excavation operations, and special steel products. Good pricing power and broad geographic and customer segment diversification further support the ratings. The ratings also take into account exposure to cyclical demand
