S&P rates Sanmina revolver BBB-

S&P said it assigned its BBB- issue-level rating and 2 recovery rating to Sanmina Corp.'s amended five-year $500 million secured revolving credit facility.

The recovery rating indicates an expectation for substantial recovery (70% to 90%; rounded estimate: 75%) in the event of payment default.

The rating is the same as the ratings on the company's existing $375 million secured notes due 2019.

The outlook is stable.

The agency said the BB+ corporate credit rating is unchanged and reflects Sanmina's highly competitive and cyclical industry conditions and meaningful client concentration with its top 10 customers representing about half of revenues.

Its focus on the higher-margin, faster-growing industrial, medical and defense segment and its modest leverage in the mid-1x area partly offset these factors, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.