Moody's cuts Flextronics outlook

Moody's Investors Service revised its outlook on Flextronics International Ltd. to negative from stable but confirmed its ratings including its $400 million 6.5% senior subordinated debentures due 2013, €150 million 9.750% senior subordinated debentures due 2010 and $7.7 million 9.875% senior subordinated debentures due 2010 at Ba2, reflecting the California jury verdict of $934 million last week in favor of Beckman Coulter Inc. in a lawsuit against Flextronics involving a contract dispute.

The court has stayed enforcement of the judgment pending determination of post-trial motions to correct the verdict, set it aside or order a new trial. These motions are currently scheduled to be heard on Nov. 25. If these motions are unsuccessful, Flextronics plans to appeal.

In the event that judgment is not set aside or modified, it would be a material negative event to the company's overall liquidity position. Specifically, Moody's said it might well represent an event that would materially hinder, if not completely eliminate, access to its existing $880 million revolver facility.

Further, if an appeal bond is necessary, it may result in a material reduction to the company's current cash and cash equivalents position estimated at $770 million, pro forma for the July convertible note offering.

S&P says Williams unchanged

Standard & Poor's said The Williams Cos. Inc.'s ratings are unchanged including its corporate credit at B+ with a negative outlook following the recently completed sale of Canadian assets.

The transaction was in line with expectations, S&P said.

Williams will receive $214 million in U.S. funds from Provident Energy Trust for a natural gas liquids fractionation, storage and distribution system at a plant in Redwater, Alta.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.