S&P revises Avnet to negative

S&P said it revised its outlook on Avnet Inc. to negative from stable and affirmed all of its ratings, including the BBB- corporate credit rating.

Avnet expects to receive net cash proceeds of about $2 billion.

The company expects the transaction to close in the first half of 2017.

"The rating action reflects our assessment of risks related to the divestiture of its TS business in addition to the previously announced planned acquisition of Premier Farnell," S&P credit analyst Tuan Duong said in a news release.

"Furthermore, the company's pro forma credit metrics could weaken, as the use of sales proceeds from its TS divestiture has yet to be determined."

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