S&P assigns BBB- to Arrow

S&P said it assigned its BBB- issue-level rating to Arrow Electronics Inc.'s proposed unsecured senior notes due 2024. The rating is the same as the ratings on the company's existing senior unsecured notes.

The company intends to use the net proceeds for general corporate purposes, including debt repayment.

“The company's proposed notes offering does not affect our BBB- corporate credit rating on the company. We expect the transaction will not have a material impact on the company's pro forma leverage (including our surplus cash adjustment) at about 2.7x as of July 1,” the agency said in a news release.

“Our corporate credit rating on Arrow Electronics reflects the company's position as one of the largest global technology products distributor, good free operating cash flow generation, and countercyclical working capital requirements that should support cash flow during periods of low demand.”

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