Fitch affirms Flextronics, gives loan BB+

Fitch Ratings said it completed its review of Flextronics International Ltd., following the company's acquisition of Solectron Corp., and resolved Flextronics' rating watch negative status by affirming the following ratings: issuer default rating at BB+ and senior unsecured credit facility at BB+.

Fitch said it also rated Flextronics' new senior unsecured term B loan at BB+.

Additionally, Fitch said it has downgraded the rating on Flextronics' senior subordinated notes from BB to BB-.

The outlook is negative.

The negative outlook reflects integration risks inherent in an acquisition of this size, with the combined company expected to generate in excess of $30 billion in annual revenue, particularly in an industry that is dependent on seamless day-to-day execution and the risk of customer loss following the acquisition of Solectron, although Fitch said it expects this risk to be manageable.

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