Moody's lifts Avnet view to stable

Moody's Investors Service said it affirmed Avnet, Inc.'s Baa3 senior unsecured rating and changed the outlook to stable from negative.

The change in outlook reflects an expectation that the company will grow revenues with stable- to improving margins while maintaining an adjusted debt-to-EBITDA ratio in the current mid-2x range, the agency said.

The rating is supported by the company's scale and geographic breadth as one of the leading global distributors of electronic components and embedded computing devices, Moody's said.

Although the sale of its technology solutions unit in February 2017 reduced its revenue base by about one third, the remaining businesses are more focused around the core strengths of serving design engineers, original equipment manufacturers and providers of electronic manufacturing services across the world, the agency explained.

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