Fitch affirms Sanmina

Fitch Ratings said it affirmed Sanmina-SCI Corp.'s issuer default rating at B+, senior secured credit facility at BB+/RR1, senior unsecured notes at BB+/RR1 and senior subordinated debt at B/RR5.

The outlook is negative.

Fitch said the negative outlook reflects continued uncertainty about Sanmina's ability to exit the personal computer business or the potential restructuring costs associated with the sale.

The affirmation reflects significantly improved working capital efficiency, opportunities for revenue growth in non-traditional markets and the benefits of the planned sale of the personal computer business and subsequent focus on more profitable segments of its core business, according to the agency.

Concerns include possibility that the company's core market will remain highly competitive with continued pressure on profitability in addition to concerns over Sanmina's ability to stabilize its revenue base following several quarters of negative growth in its core business, Fitch said.

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