S&P affirms Flextronics on $100 million add-on

Standard & Poor’s said it affirmed the BBB- rating on Flextronics International Ltd.’s unsecured debt following the disclosure of a $100 million add-on to its existing unsecured term loan due 2019.

The proceeds will be used for general corporate purposes.

The company’s leverage was in the low 2x range as of Sept. 25, up from 1.9x as of June 26 as a result of the completion of the MCi acquisition, but was within the limits of the rating, which allows for leverage at 3x or less, S&P said.

The rating reflects the company’s leading position in the contract-manufacturing industry and improving mix of faster growing, more profitable end-markets, the agency said.

The ratings also consider its competitive and cyclical industry, as well as its meaningful customer concentration, S&P said.

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