The ratings on Melville, N.Y.-based Arrow Electronics, Inc. reflect a leading market position and good operating performance in the face of challenging industry conditions. These factors are offset by highly competitive, relatively low-margin industry characteristics, as well as variable profitability and debt protection metrics due to volatility in industry demand. Arrow is one of the leading global electronic components and computer products distributors. Arrow reported revenues of $6.3 billion in the first half of fiscal 2006, up almost 20% from the prior year period, because of revenue contributions from recent acquisitions. While visibility of industry demand is very limited, moderate growth conditions are expected to continue through the remainder of 2006. At lower growth rates, competitive pricing pressures make it
