Fitch upgrades Sanmina-SCI view to positive

Fitch Ratings said it affirmed Sanmina-SCI Corp.'s issuer default rating at B+, senior secured credit facility at BB+ with a recovery rating of RR1, senior unsecured notes at BB with a recovery rating of RR2 and senior subordinated debt at B- with a recovery rating of RR6.

The outlook was revised to positive from stable.

The positive outlook reflects Sanmina's declining leverage, falling to 3.4x as of July 2 from 4.6x as of July 3, 2010, Fitch said.

Improvements in key operating metrics reflect incremental success in management's efforts to differentiate Sanmina from larger competitors and target more niche market opportunities, the agency said.

Ratings concerns include the industry's competitive environment, which has pressured profitability across the industry and the company's history of underperformance, Fitch said.

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