Ratings on Arrow Electronics Inc. reflect a strong market position, highly competitive industry conditions, and weakened debt-protection measures. Melville, N.Y.-based Arrow has built its position as one of the leading global electronic components and computer products distributors through ongoing acquisitions. However, electronic industry component pricing and demand are expected to be weak in the near term, reflecting economic weakness and reduced levels of technology spending. Arrow reported a 34% year-to-year revenue decline in the quarter ended September 2001 and a net loss of $14 million, excluding special charges. Arrow took a series of cost-reduction actions during 2001, which the company expects will enable it to be modestly profitable at current revenue levels. Arrow has historically made acquisitions to enhance its
