The rating on Englewood, Colo.-based Arrow Electronics Inc. reflects the company's "satisfactory" business risk profile and "intermediate" financial risk profile (based on Standard&Poor's Ratings Services' criteria) in the face of challenging macroeconomic industry conditions. The electronic distribution industry's highly competitive and relatively low-margin characteristics, as well as the potential for variable profitability and debt protection metrics resulting from volatile industry demand offset company strengths. Arrow is one of the leading global electronic component and computer product distributors. The company reported revenue of $21.4 billion in 2011. Recent IT spending cyclicality and competitive pricing pressures make it more challenging for distributors to maintain profitability levels. Nevertheless, we expect acquisitions and ongoing efficiency improvements to enable Arrow to maintain adequate
