The ratings reflect New Britain, Conn.-based The Stanley Works Co.'s strong market positions in a wide array of tools and hardware products for the do-it-yourself, industrial, and construction markets; good geographic diversity; improved cost structure; and strong cash flows. These factors more than offset cyclical demand, the price erosion that is endemic in the global tools industry, and moderate business portfolio transformation risks. Stanley's strong business profile is supported by its high brand-name recognition and significant global market presence. Stanley holds either the first- or second-place market-share position in most tool categories and carries the broadest product line in the industry. New products, brand development, product-line extensions, and strategic alliances with home centers and mass merchants should promote modest long-term
