The ratings on The Netherlands-based diversified technology group Koninklijke Philips Electronics N.V. (Philips) reflect its global reach and wide product diversification, combined with a strong brand name and several world-leading positions. The ratings are also supported by the group's strong positions in stable cash-generative businesses such as medical systems, lighting, and domestic appliances and personal care. The ratings are constrained by Philips' exposure to the seasonal and competitive consumer electronics sector, although the group continues to reduce its exposure to this segment. They are also affected by variable operating environments in certain divisions, product segments, and geographic markets, due to the macroeconomic environment and competition. Recently completed acquisitions (medical and respiratory technology company Respironics Inc. for €3.6 billion; lighting fixtures
