Strong business profile, supported by solid competitive positions and extensive geographic diversity. Efficient cost management. Solid track record of free cash flow generation. Large dividend payout and acquisition programs. Exposure to cyclicality in most of the group's end markets. The ratings on Schneider Electric S.A. (Schneider) reflect Standard&Poor's Ratings Services' view of the group's strong business risk profile and intermediate financial risk profile. The ratings are supported by what we view as Schneider's sound competitive positions, extensive geographic diversity, efficient cost management, and ability to generate robust free operating cash flow (FOCF). These strengths are tempered, however, by the cyclical nature of most of Schneider's end markets and what we see as management's acquisitive strategy and generous dividend
