The ratings on France-based Schneider Electric S.A.--a major worldwide player in electrical distribution, industrial controls, and automation--were placed on CreditWatch with negative implications on Oct. 30, 2006, following the group's €4.8 billion ($6.1 billion) bid for 100% of American Power Conversion (APC). Success in acquiring APC would increase Schneider's debt levels by an expected €3.2 billion, resulting in a financial profile more commensurate with a rating in the 'BBB' category. Schneider also has other small acquisitions totaling about €800 million in the pipeline. Taking APC and the anticipated acquisitions together, Standard&Poor's Ratings Services expects funds from operations (FFO) to adjusted debt to deteriorate significantly below the 40% minimum for the current ratings. We will resolve the CreditWatch status
