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. Economic weakness and reduced levels of technology spending resulted in steep revenue and earnings declines in 2001 and 2002, particularly in the electronic components sector. However, industry conditions have stabilized, and Arrow reported revenue and earnings growth in the first half of 2003, bolstered by the February 2003 purchase of Pioneer-Standard Electronics Inc.'s Industrial Electronics Division. Revenues for the quarter ended Sept. 30, 2003, were up 15% year-over-year. EBITDA
