The ratings on Schneider Electric S.A. (Schneider) reflect Standard&Poor's Ratings Services' view of the group's strong business risk profile and intermediate financial risk profile. The ratings are supported by what we view as Schneider's sound competitive positions, extensive geographic diversity, efficient cost management, and ability to generate robust free operating cash flow (FOCF). These strengths are tempered, however, by the cyclical nature of most of Schneider's end markets and what we see as management's acquisitive strategy and generous dividend policy. Schneider has experienced significant negative effects from the global economic downturn in 2009. In the year, its sales declined by 15.7% organically year on year. The electrical distribution segment showed the greatest resilience, reporting a 13.4% decline in
