S&P rates TTM Technologies convertibles BB

Standard & Poor's said it assigned its BB issue-level rating and 4 recovery rating to TTM Technologies Inc.'s proposed $150 million senior unsecured convertible notes due 2020.

The ratings are the same as those on the company's existing convertible debt. The 4 recovery rating indicates an expectation for average recovery (30% to 50%) in the event of payment default.

The company intends to use the proceeds to repurchase a portion of its outstanding convertible notes due 2015. S&P added that it believes that the company will reserve any unused proceeds for required debt repayment in 2014 and early 2015.

The ratings reflect S&P's view of TTM's "significant" financial risk profile with leverage in the low-3x area as of Sept. 30 and its "weak" business risk profile marked by cyclical end market demand, a fragmented and competitive PCB manufacturing industry, meaningful customer concentration, and rising labor costs.

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