The speculative-grade ratings on WESCO International Inc. and its subsidiary, WESCO Distribution Inc., reflect the parent's somewhat aggressive financial policies, which more than offset its satisfactory business risk profile as a leading distributor of electrical construction products; maintenance, repair, and operating supplies; and integrated supply and outsourcing services. Pittsburgh, Pa.-based WESCO is one of the largest electrical distributors in the U.S. It competes mainly in the U.S. wholesale electrical distribution industry. We estimate the industry's long-term growth trend to be in the low- to mid-single-digit percent area. Overall economic conditions and the increasing use of electrical parts partly influence demand. The market is highly fragmented, which can lead to very intense pricing pressures, particularly during periods of weak demand. The
