S&P assigns Avnet notes BBB-

S&P said it assigned a BBB- rating to Avnet Inc.’s planned $300 million of senior unsecured notes due 2031.

Avnet plans to use the proceeds to cover the redemption of its $300 million of unsecured notes due 2021.

Based on Avnet’s better-than-expected results over the last three quarters and the demand for semiconductors, S&P said it affirmed Avnet’s BBB- issuer rating and revised the outlook to stable from negative.

“At the current investment-grade rating, we also expect the company to restore its EBITDA margins to above 3% by about November 2021. The company's S&P Global Ratings-adjusted leverage and EBITDA margins are estimated to be about 2.5x and 2.5%, respectively, for the 12 months ending April 3, 2021, which in our view is trending in line or slightly ahead of this requirement,” the agency said in a press release.

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