Fitch affirms Avnet

Fitch Ratings said it affirmed Avnet, Inc.'s issuer default rating at BBB-, senior unsecured bank credit facility at BBB- and senior unsecured notes at BBB-.

The agency said its stable outlook for IT distributors in 2011 is based on expectations for steady end-market demand and stabilization of industry financial profiles, offset by expectations of moderate deterioration in liquidity and heightened event risk.

Fitch said it expects a slowdown in sales growth in 2011, as corporate IT demand normalizes amid sluggish growth in North America and Europe, offset by continued strong growth in the emerging markets, particularly Asia-Pacific.

After peaking in the September quarter of 2009, liquidity profiles are likely to deteriorate slightly as companies continue their acquisitive growth strategies in the coming year, the agency said.

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