Moody's rates Flextronics SGL-1

Moody's Investors Service said it assigned a speculative grade liquidity rating of SGL-1 to Flextronics International Ltd.

This rating is based on the company's very good liquidity, supported by its (i) approximate $840 million in cash and cash equivalents balance (pro forma for the recent $500 million notes offering and associated refinancing); (ii) expected negative free cash flow generation, accounting for the approximate $580 million purchase price payments due Nortel, of $200 to $250 million for the 12 months ending September 2005; and (iii) ability, subject to pro forma covenant compliance, to access the existing $1.1 billion revolver (pro forma for the recent notes refinancing, completely unutilized), Moody's said.

Further, the rating reflects Moody's expectation that the company will remain well within compliance with the facility's total leverage and fixed charge coverage tests during this next 12 months period.

© 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.