Fitch affirms Solectron

Fitch Ratings said it affirmed Solectron Corp.'s BB- senior unsecured debt, BB+ senior secured bank credit facility and B- subordinated debt. The outlook is stable.

Fitch said the ratings reflect Solectron's ongoing relatively weak, albeit improving, operating performance versus tier-1 electronic manufacturing services peers, less than optimal capacity utilization rates and expectations for flat revenue growth for fiscal 2005.

Additionally, Fitch said the contract-pricing environment remains pressured, particularly for traditional electronics manufacturing services, which continue to represent the majority of industry revenues despite efforts to expand service offerings.

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