Good position within the highly competitive and fragmented global connector industry. Broad end market exposure partially mitigates macroeconomic cyclicality. Lower profitability compared to major industry peers partly because of high research and development (R&D) spending. Continued operational and financial support from its ultimate parent company, Koch Industries Inc. (Koch; AA-/Stable/A-1+). Good free operating cash flow (FOCF) generation, with FOCF-to-debt in the low- to mid-teens percentage range expected over the next 12-24 months. Acquisition growth strategy, leading to leverage in 2x-3x over time. S&P Global Ratings' stable outlook on Molex Electronic Technologies LLC reflects its expectation that the company will maintain its good market position and consistent operating performance, while upholding its existing financial policies over the next 12-24 months. The
