Moody's rates Flextronics loan Ba1

Moody's Investors Service said it assigned a provisional Ba1 rating to Flextronics International, Ltd.'s proposed $2.5 billion unsecured term loan.

Proceeds will be used to finance the cash portion of its pending acquisition of Solectron Corp. The provisional rating assumes a corporate family rating of Ba1.

According to Moody's, the rating for the proposed term loan reflects a probability-of-default rating of Ba1 and a loss-given-default assessment of LGD 4.

The company's ratings remain under review for downgrade pending completion of the company's merger with Solectron, which is expected to close in October 2007.

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