Limited diversification with two niche operating segments that generate little revenue outside of North America, and customer concentration with two distributors representing more than 20% of the company's revenues Good market positions (generally No. 1 or No. 2) in niche markets Exposure to cyclical residential and nonresidential construction end-markets Execution risks associated with expanding its metering and leak detection lines of business, as well as the potential for acquisitions Although improving, the company's credit measures have been historically volatile Debt-to-EBITDA metric of about 3x and a funds from operations (FFO)-to-debt ratio of about 26% for the fiscal-year ended Sept. 30, 2015 Moderate cash flow generation of about $70 million annually Standard&Poor's Ratings Services stable outlook on Mueller Water
