S&P rates Sanmina loan BB

Standard & Poor's said it assigned its BB bank loan rating and 1 recovery rating to Sanmina-SCI Corp.'s proposed $500 million senior secured facility maturing in 2007.

At the same time, S&P affirmed its outstanding ratings on the company, including the BB- corporate credit rating, BB- rated $750 million senior secured notes, and B subordinated debt rating. The outlook is stable.

S&P said the ratings reflect Sanmina's subpar operating performance, low capacity utilization, and volatile end-market demand, particularly in communications and computing end markets. These concerns are partially offset by the company's top-tier business position, a customer base of leading original equipment manufacturers, and longer-term trends favoring electronic manufacturing outsourcing.

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