The 'B' corporate credit rating reflects SRAM LLC's high debt leverage, limited liquidity, and risks relating to its sales concentration in the midrange to high-end bicycle market, which faces prospects of slowing growth. The company's good market position in some segments of the bicycle component market and its long-term, non-exclusive relationships with major bicycle original equipment manufacturers (OEMs) only partially offset these factors. SRAM is a distant second in the highly competitive bicycle component market. The company's market share totals roughly one-third of market leader Shimano Inc., which has stronger brand recognition, product development ability, and profitability, as well as lower financial leverage. Still, SRAM holds a good competitive position in four of its six product categories, accounting for about
