The ratings on Arrow Electronics Inc. reflect a leading market position, offset by a leveraged financial profile and weak debt protection measures. Melville, N.Y.-based Arrow is one of the leading global electronic components and computer products distributors. However, economic weakness and reduced levels of technology spending have resulted in steep revenue and earnings declines since 2000, particularly in the electronic components sector. Arrow reported a 23% decline in revenues, to $1.8 billion, in the quarter ended June 30, 2002, from the year-earlier level. The company reported a net loss, before the effect of changes in accounting principles, of $6 million in the June quarter, compared with earnings of $7 million in the prior-year period. Although revenue and earnings levels are
