Above-average business profile, supported by solid competitive positions and extensive geographic diversity Efficient cost management Strong financial structure and ability to generate solid free cash flow Large dividend pay-out and acquisition programs Exposure to cyclicality in most of the company's end markets The ratings on France-based Schneider Electric S.A.--a major worldwide player in electrical distribution, industrial controls, and automation--were placed on CreditWatch with negative implications on Oct. 30, 2006, following the group's €4.8 billion ($6.1 billion) bid for 100% of American Power Conversion (APC). Success in acquiring APC would increase Schneider's debt levels by an expected €3.2 billion, resulting in a financial profile more commensurate with a rating in the 'BBB' category. Schneider also has other small acquisitions totaling about
