Moody's rates Flextronics notes Ba1

Moody's Investors Service said it assigned a Ba1 (LGD 3, 42%) rating to Flextronics International Ltd.'s proposed senior notes. The Ba1 corporate family rating, the Ba1-PD probability of default rating and the stable outlook are unchanged.

Proceeds from these notes are expected to repay a portion of the existing $1 billion term loan due 2014.

The agency said Flextronics' Ba1 corporate family rating is supported by the status as a tier 1 electronics manufacturing services provider, evidenced by its global scale, diversity and size as the second largest EMS player in the world by revenues.

Nonetheless, there is volatility in operating performance resulting from limited demand visibility, high customer concentration and high fixed costs associated with managing vertically integrated operations across a global footprint, Moody's said.

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