Global reach, wide product diversity, a strong brand name, and several world-leading market positions. Strong positions in stable, fairly cash-generative businesses, such as medical systems. Exposure to the effect of some cyclicality. Profitability margins that have been historically volatile and lower than peers'. Ability to generate significant recurring cash flows. Strong liquidity and financial flexibility. Ability to access different financing sources. High pension benefit obligations. The stable outlook on Netherlands-based diversified technology group Koninklijke Philips N.V. reflects Standard&Poor's Ratings Services' view that Philips' key financial ratios over the next two years will likely remain above levels we consider commensurate with the current ratings. These include funds from operations (FFO) to debt exceeding 50% and generation of a significant
