Fitch: Jabil Circuit unaffected

Fitch Ratings said Jabil Circuit Inc.'s announcement of a definitive agreement to acquire the electronics manufacturing operations of Varian Inc. for about $195 million, including $35 million-$40 million for inventory, does not appear to have an immediate effect on Jabil's ratings or outlook.

Fitch said it expects that Jabil will fund the transaction with current cash balances and/or borrowings under its undrawn $400 million three-year unsecured revolving bank credit facility due July 2006. Jabil's senior unsecured debt is rated BBB- with a stable outlook.

Fitch said it does not believe that the transaction will meaningfully affect Jabil's long-term credit profile, given the company's financial flexibility and solid liquidity position.

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