Summary: Alfa Laval AB Feb 13

Standard & Poors, February 2013

Abstract
The rating on Swedish industrial machinery manufacturer Alfa Laval AB reflects Standard & Poor's Ratings Services' view of the company's "satisfactory" business risk profile and "modest" financial risk profile. Support for the rating comes from the company's leading market positions, good cost flexibility, strong profitability, high share of stable aftermarket sales, and fairly diverse earnings base. In addition, Alfa Laval enjoys strong and stable cash generation and in our view, demonstrates good liquidity management. These strengths are offset by the company's exposure to demand cyclicality and meaningful competition, and what we see as a shareholder-friendly and acquisitive financial policy. We believe Alfa Laval's continued strong financial performance provides headroom for potential cash and debt-funded bolt-on acquisitions. We think it likely...

Companies mentioned in this report are:
- Alfa Laval AB

Action: Review

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included.

- Alfa Laval AB

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