Strong business profile, owing to solid competitive positions and extensive geographic diversity. Efficient cost management. Solid track record of free cash flow generation. Large dividend payout and acquisition program. Exposure to cyclicality in most end markets. The ratings on French electrical distributor Schneider Electric S.A. (Schneider) reflect Standard&Poor's Ratings Services' view of the company's "strong" business risk profile and "intermediate" financial risk profile. Schneider's sound competitive positions, extensive geographic diversity, efficient cost management, and ability to generate robust free operating cash flow support the ratings. However, these strengths are tempered by the company's moderate financial policy--which, as demonstrated in 2011, can be simultaneously characterized as fairly acquisitive and generous in terms of dividend distribution--and, to a lesser extent,
