S&P rates Sanmina-SCI notes B

Standard & Poor's said it assigned a B senior subordinated rating to Sanmina-SCI Corp.'s $600 million senior subordinated notes due 2016.

The outlook remains negative.

Proceeds from the notes, together with cash on hand, will be used to tender for all of the company's $750 million 10 3/8% senior secured notes due 2010.

S&P the ratings reflect the company's low profitability, which lags its electronic manufacturing services peers; excess capacity in high-cost geographies and slow end-market demand in communications and desktop computer end markets. These concerns are partly offset by the company's top-tier business position.

Sanmina-SCI had about $1.7 billion in lease-adjusted debt as of December 2005.

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