Fitch: Ingram Micro outlook stable

Fitch Ratings said it revised Ingram Micro Inc.'s outlook to stable from negative and affirmed its issuer default rating, $275 million senior unsecured credit facility and $250 million senior unsecured term loan facility at BBB-.

The stable outlook for the IT distributors in 2010 is based on a more optimistic view on end-market demand and resulting improvement of industry financial profiles offset by expectations of moderate deterioration in liquidity and heightened event risk, according to the agency.

The company's strengths include its scale of operations including its global footprint, financial capability and breadth of product offering, as well as the importance of the wholesale distribution model for original equipment manufacturers, the agency said.

Concerns center on Ingram's exposure to the cyclicality of IT demand and general global economic conditions as well as low margin and high working capital nature of the wholesale distribution model, the agency noted.

© 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.