Our 'BB' corporate credit rating on WESCO International Inc. is derived from: Our anchor of 'bb+', based on our "satisfactory" business risk and "significant" financial risk profile assessments for the company. Our assessment of WESCO's "unfavorable" comparable rating analysis results in us lowering the rating by one notch, resulting in the 'BB' corporate credit rating. Top-tier positions in the U.S. and Canadian electrical distribution markets End-market and customer diversity across construction, industrial, institutional, governmental, and utility infrastructure markets Highly competitive and fragmented industry, with exposure to economic, industrial, and construction cycles Low fixed-capital intensity, but significant working capital needs Modest but stable EBITDA margins of about 7% An acquisition strategy that involves integration risk A publicly stated policy to maintain
