Leading global distributor of electronic components and computing solutions Diverse customer base with no significant concentration Low margin characteristics of the electronic components distribution industry Volatility of industry demand Good cash flow from operations of at least $700 million expected over the next 12-24 months Counter-cyclical working capital needs Acquisitive growth strategy The stable outlook on Arrow Electronics Inc. reflects our expectation that the company will maintain its market position and continue to generate positive free operating cash flow (FOCF) while maintaining leverage at or below the high-2x area. We could lower the rating if the company were to adopt a more aggressive financial policy, such that leverage is sustained at or above 3x. We believe an upgrade is unlikely
