The ratings on The Stanley Works Co. (Stanley), based in New Britain, Conn., reflect strong market positions in a wide array of tools and hardware products for the do-it-yourself, industrial, and construction markets; good geographic diversity; competitive 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 the moderate risks from transforming the business portfolio. Key competitive strengths include: High brand-name recognition globally, with the first- or second-place market-share position in most tool categories; New products, brand development, product-line extensions, and strategic alliances with home centers and mass merchants generating modest long-term sales growth in the mature hand-tool market; Focus on acquisitions that reduce the
