S&P: Solectron outlook positive

Standard & Poor's revised the outlook for Solectron Corp. to positive from stable. The ratings, including the B+ corporate credit rating, were affirmed.

S&P said the outlook revision reflects improving operating profitability and significant debt reduction.

"The ratings on Solectron reflect sub par operating profitability relative to the company's peers in the highly competitive electronics manufacturing services industry, as well as a still leveraged financial profile," said S&P credit analyst Emile Courtney. "These are somewhat offset by adequate financial flexibility from cash balances, Solectron's top-tier position in the EMS industry, and well-established customer relationships."

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