The ratings on Schneider Electric S.A. reflect the group's solid business profile, which is supported by sound competitive positions, extensive geographic diversity, and efficient cost management. They also take into account Schneider's ability to generate robust free operating cash flow (FOCF). Tempering these strengths are the cyclical nature of most of Schneider's end markets and the group's acquisitive strategy and generous dividend policy. In 2008, Schneider's revenues increased by 5.8%. All the businesses contributed to this growth, and all regions of operation reported an increase with respect to 2007. However, the deterioration of economic conditions weighed on the group's fourth quarter, with sales decreasing year on year by 2.3% in Europe and 5% in North America. The 2008 reported EBITA
