Fitch upgrades Sanmina

Fitch Ratings said it upgraded the long-term issuer default rating for Sanmina Corp. to BB+ from BB.

Fitch also said it affirmed the senior secured revolving credit facility rating at BBB- and assigned a recovery rating of RR1.

The agency also affirmed the company’s senior secured notes at BB+ and assigned a recovery rating of RR3.

The outlook is stable.

The ratings reflect expectations for improving operating performance through the intermediate term, driven by positive organic revenue growth from increasing exposure to faster growing emerging end markets, including industrial, defense and medical, Fitch said.

The agency also said it expects profit margins to expand with a higher mix of emerging end-market sales and higher annual free cash flow from longer life cycles associated with these products, the agency said.

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