Ratings on Arrow Electronics Inc. reflect a strong market position, highly competitive industry conditions, and somewhat weak debt protection measures following recent debt-financed acquisitions. Melville, N.Y.-based Arrow has built its position as one of the leading global electronic components and computer products distributors through ongoing acquisitions. After two years of weak electronic-industry component pricing and demand, Arrow posted strong revenue and earnings growth for 2000. Arrow's EBITDA margins were in excess of 6.5% in 2000, compared to a 4.4% EBITDA margin in 1999. However, a prolonged downturn in technology investment or general economic conditions could put additional pressure on operating profitability. Arrow has historically made acquisitions to enhance its market position and is expected to continue to do so. While
