S&P: Flextronics on watch

Standard & Poor's said it placed its BB+ corporate credit and BB- subordinated debt ratings on Flextronics International Ltd. on CreditWatch with negative implications, following the company's announcement that it intends to acquire Solectron Corp. for cash and stock valued at about $3.6 billion.

At the same time, the agency said it affirmed its BB- corporate and senior unsecured ratings on Solectron, noting that these ratings will be withdrawn following the transaction.

The agency added that the combination of Flextronics and Solectron enhances the business profile of the company through reduced end market concentration, increased scale and potential for cost reducing synergies.

© 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.