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 Electronics Inc. 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, with the ratio of debt to EBITDA sustained above 3x, could lead to a downgrade. Thin profitability and cyclical working capital requirements, coupled with Arrow's acquisitive growth profile, limit a possible higher rating. Our base-case scenario incorporates low-single-digit revenue growth
