The ratings on French electrical distributor Schneider Electric S.A. (Schneider) reflect Standard&Poor's Ratings Services' view of the company's "strong" business risk profile and "intermediate" financial risk profile. Schneider's sound competitive positions, extensive geographic diversity, efficient cost management, and ability to generate robust free operating cash flow support the ratings. However, these strengths are tempered by the company's moderate financial policy and, to a lesser extent, our opinion of the cyclical nature of most of Schneider's end markets. We consider that under its financial policy in recent years, Schneider has an appetite for debt-financed acquisitions and has paid out generous dividends. After reporting 0.6% negative organic sales growth for the first nine months of 2012, Schneider has indicated it
