The ratings on Melville, N.Y.-based 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. 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 continue to improve, supporting expectations for revenue and earnings growth for Arrow in 2004. Arrow reported revenues of $2.7 billion and net income of $29.5 million in the quarter ended March 31, 2004, both up strongly from the previous year. Operating performance
