World leading positions in the core business. High-quality products and technological leadership. Diverse production and sales, with an increasing share of service and aftermarket sales. Cyclical demand patterns for the company's products. High degree of vertical integration, resulting in volatile operating margins and cash flow. Volatile free operating cash flow generation. Relatively high adjusted debt levels. Fairly shareholder-friendly dividend policy. Currently subdued credit ratios for the rating. The stable outlook on Sweden-based capital goods manufacturer Sandvik AB takes into account Standard&Poor's Ratings Services' assumption that the company's credit measures will improve throughout the rest of 2014 and over 2015. We currently view Sandvik's credit ratios as low for the ratings, reflecting its recent acquisition of Varel international and
