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 the potential for variable profitability and debt protection metrics because of volatility in industry demand. Arrow is one of the leading global electronic components and computer products distributors. Arrow reported revenues of $13.6 billion in fiscal 2007. Annual revenue growth was almost 22%, bolstered by an acquisitive growth strategy. While visibility of industry demand is very limited, moderate growth conditions are expected to continue through the remainder of 2007. At lower growth rates, competitive pricing pressures make it more of a challenge for
