S&P: Flextronics loan BBB-

Standard & Poor’s said it assigned a BBB- rating to Flextronics International Ltd.’s €50 million unsecured term loan due 2020.

The company will use the proceeds for general corporate purposes.

The borrowers are two Mirror Controls International entities and Flex guarantees the loan, the agency said.

The company’s leverage was in the mid-2x range as of Dec. 31, 2015, up from 1.9x as of June 26, 2015, as a result of the completion of two acquisitions, but was within the limits of the rating, which allows for leverage of 3x or lower, S&P said.

The ratings reflect 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, S&P said, as well as its meaningful customer concentration.

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