S&P rates Flex unit bond BBB-

S&P said it assigned its BBB- issue rating to the planned fixed-rate senior unsecured bonds to be issued by Flex Ltd.'s wholly owned Hungarian subsidiary, Flextronics International Termelo es Szolgaltato Vamszabadteruleti Korlatolt Felelossegu Tarsasag.

The subsidiary is expected to sell up to Hungarian forint 100 billion, have a 10-year tenor, amortizing 10% annually in years seven, eight and nine with a final 70% bullet payment in 2031, and a 3.6% HUF annual fixed-rate coupon.

“The issue rating reflects the proposed notes' unsecured senior ranking and the irrevocable and unconditional guarantee by Flex Ltd.,” S&P said in a press release.

The company will apply the proceeds toward general corporate purposes.

The outlook is stable.

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