The ratings on Sandvik AB reflect the company's world-leading position as a cemented-carbide tool supplier to the metalworking industry, as well as its strong financial profile. Sandvik holds strong positions in other niches such as tooling systems for metalworking applications, products for rock-excavation operations, and special steel products. On Dec. 31, 2007, Sandvik had estimated adjusted interest-bearing debt of about Swedish kronor (SEK) 32 billion ($4.9 billion), including estimated unfunded postretirement liabilities and operating leases of SEK4 billion. Thanks primarily to the high profitability of its metalworking tools segment, Sandvik retains good profit margins, even during cyclical downturns. The company typically responds early to negative market developments, and has a good track record of successfully integrating acquisitions. Sandvik's operating profit
