The ratings on Schneider Electric S.A., the leading world player in electrical distribution and industrial control and automation, remain on CreditWatch following completion of the company's share offer for France-based Legrand, the leading manufacturer worldwide of low-voltage electrical fittings, pending approval from the European competition authorities. The ratings were placed on CreditWatch on Jan. 16, 2001, after the announcement of the exchange offer. The negative CreditWatch implications reflect Standard&Poor's expectation that Schneider Electric's credit measures will be diluted by a merger with a company with weaker credit quality and, to a lesser extent, by the expected €370 million in cash to be paid to Legrand's preferred-stock holders. From a business perspective, the operation will bring together two complementary
