Summary: Arvos LuxCo S.a.r.l.

Significant exposure to highly competitive and mature markets. High dependence on thermal power generation, undermining longer-term business prospects. Exposure to cyclical end markets, including energy, petrochemicals, chemicals, and general industrial. A relatively narrow product offering. Sizable after-market business supporting relatively high EBITDA margins A highly leveraged financial risk profile, with debt to EBITDA exceeding 6x, and funds from operations (FFO) to debt lower than 12%. Moderate capital expenditure (capex) needs of 2%-3% of total revenues. Adequate liquidity. Financial sponsor ownership. The stable outlook on Luxembourg-based auxiliary components group Arvos LuxCo S.a.rl. reflects S&P Global Ratings' opinion that Arvos will likely continue to generate positive free operating cash flow (FOCF) over 2018-2019. We base this view on our assumption that the

...Business Risk: Weak Financial Risk : Highly leveraged + Significant exposure to highly competitive and mature markets. + High dependence on thermal power generation, undermining longer-term business prospects. + Exposure to cyclical end markets, including energy, petrochemicals, chemicals, and general industrial. + A relatively narrow product offering. + Sizable after-market business supporting relatively high EBITDA margins + A highly leveraged financial risk profile, with debt to EBITDA exceeding 6x, and funds from operations (FFO) to debt lower than 12%. + Moderate capital expenditure (capex) needs of 2%-3% of total revenues. + Adequate liquidity. + Financial sponsor ownership....

Summary