Fitch: Avnet unaffected

Fitch Ratings said it believes Avnet's proposed $676 million acquisition of Memec Group Holding Ltd. will have no immediate affect on the company's ratings as the majority of the purchase price will be funded with Avnet stock.

Fitch rates Avnet's senior unsecured debt BB. The outlook is stable.

Credit protection measures are expected to improve slightly at the transaction's closing due to the combined company's higher profitability and will improve further if, as anticipated, Avnet repays the assumed Memec debt with a combination of cash on the balance sheet and borrowings from its undrawn $350 million revolving bank credit facility expiring June 2007, according to Fitch.

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