The ratings reflect The Stanley Works Co.'s above average business position as a leading producer of a wide array of tools and hardware products for the do-it-yourself, construction, and industrial markets, and its moderate financial policies. The New Britain, Conn.- based company's business profile is supported by high brand-name recognition, significant global market presence, and end-user diversity, including substantial sales to the more stable repair-and-remodel markets. These factors should mitigate earnings cyclicality. Greater focus on new products, brand development, product line extensions, and strategic alliances with home centers and mass merchants, should promote long-term sales growth. Nonetheless, the increasing share of tools distributed through home centers and mass merchants is heightening customer concentration risks and subjecting the company to mounting
