Moody’s assigns Flextronics notes Ba1

Moody's Investors Service said it assigned a Ba1 (LGD3) rating to Flextronics International Ltd.'s $500 million senior unsecured note offering.

Proceeds will be used for general corporate purposes, including funding the pending $500 million acquisition of Mirror Controls International.

All other ratings including, the Ba1 corporate family rating, remain unchanged.

The outlook is positive.

The Ba1 (LGD-3) rating of the senior unsecured notes was assigned using Moody's Loss Given Default Methodology. The agency noted that Flextronics has significant international accounts payable balances at the foreign subsidiaries, the majority of which are deemed subordinate to the unsecured debt at the parent, due to the upstream guarantees supporting the parent debt and the cash flows generated at the guarantee subsidiaries.

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