The ratings on Arrow Electronics Inc. reflect a leading market position and consistent operating profitability in the face of challenging industry conditions. These factors are 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 resulted in steep revenue and earnings declines since fiscal 2000, particularly in the electronic components sector. Arrow reported revenues of $7.4 billion in fiscal 2002, down 22% from the prior year. The company reported income from continuing operations (before extraordinary items) of $12.1 million in fiscal 2002, compared with a net loss from continuing operations of $75.6 million in the prior
