The ratings reflect Stanley Works Co.'s above-average business profile as a leading producer of a wide array of tools and hardware products for the do-it-yourself, industrial, and construction markets. The ratings also reflect the company's good product and geographic diversity; its improved operating margins following its cost reduction efforts and a favorable shift in its business mix; and its strong cash flows. These factors more than offset cyclical consumer and industrial demand and the price erosion that is endemic in the global tools industry. Although Standard&Poor's Ratings Services believes the company faces moderate risks in executing the repositioning of its business portfolio, the ratings incorporate expectations that Stanley will pursue its acquisition strategy in a manner that will
