S&P rates Avnet converts BBB-

Standard & Poor's said it affirmed its BBB- corporate credit rating on Avnet Inc. and assigned its BBB- rating to the company's proposed $270 million convertible senior debentures due 2034.

The outlook is negative.

S&P said ratings on Avnet Inc. reflect a strong market position, offset by a leveraged financial profile and weak debt protection measures.

Avnet is one of the leading global distributors of electronic components and computer products. After declining 30% in the fiscal year ended June 2002, Avnet's revenues stabilized in fiscal 2003. A forecast (by Gartner Dataquest) of about 5% growth in industry spending on hardware and telecom equipment supports S&P's expectations of sustained revenue growth by Avnet in calendar 2004.

The current rating incorporates the expectation that Avnet's earnings will continue to improve on a year-over-year basis in calendar 2004 and thereafter, driven by strengthening industry conditions and cost reduction efforts.

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