S&P: Flextronics off watch; loan rated BB+

Standard & Poor's said it removed its ratings on Flextronics International Ltd. from CreditWatch, where they were placed with negative implications on June 4.

The agency said that the BB+ corporate credit and BB- subordinated ratings are affirmed and the outlook is negative.

At the same time, S&P said it assigned its BB+ senior unsecured rating to the company's proposed $2.5 billion term loan B that will be used to fund the cash requirements of the acquisition of Solectron Corp.

The rating action follows a review of the proposed acquisition and will not be affected by the ultimate mix of equity and cash within the proscribed ranges used in the transaction, the agency said, noting that the ratings reflect competitive industry characteristics, significant integration challenges and potentially high initial leverage for the rating.

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