Leading market position, with an extensive branch network in the U.S. and Canada; Highly diversified end-market, customer, and supplier base; and Moderate working-capital intensity and very limited fixed-capital intensity. Significantly cyclical business with intense pricing pressures; High operating leverage, which can lead to swings in earnings over the business cycle; and Aggressive financial policies. 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
