The ratings on Sweden-based tool and mining equipment manufacturer Sandvik AB reflect the company's strong business risk profile, based on its world-leading position as a cemented-carbide tool supplier to the metalworking industry, as well as strong positions in other niches, such as tooling systems for metalworking applications, products for rock-excavation operations, and special steel products. Good pricing power, high operating efficiency and flexibility, and good geographical and customer segment diversification further support the ratings. The ratings also take into account exposure to cyclical demand and susceptibility to raw material price fluctuations. High demand growth, continued focus on high-value-added products, high capacity utilization across most businesses, and internal efficiency improvements underpin performance, but raw material price developments (primarily nickel) have weighed
