Our 'BBB-' corporate credit rating on Englewood, Colo.-based Arrow Electronics Inc. is derived from: Our anchor of 'bbb-', based on our "satisfactory" business risk and "intermediate" financial risk profile assessments for the company. The modifiers had no impact on the rating outcome. Top-tier position in the global components distribution industry; Geographic and customer diversity; Successful employment of acquisitions in a consolidating industry; and Moderate but increasing (because of consolidation) barriers to entry. Highly competitive, relatively low value-added industry; Moderate leverage; and Variable cash flow because of volatility in industry demand. The stable outlook on Arrow reflects the company's strong market position, adequate liquidity, and moderate leverage. The adoption of a more aggressive financial policy, such that debt protection metrics deteriorate,
