...The ratings of Quanta Computer Inc. (Q CI) re flect its leading industry position in original design manufacturing (ODM) services of notebook personal computers (NBPC), supported by its strong technological expertise and enduring close customer rel ationships with the world s top NBPC brand vendors. The ratings also reflect QCI s limited operating volatility, supported by intermediate\##term positive momentum for the NBPC ODM sector which Fitch Ratings anticipates will experience shipment growth of over ##% per annum in #### and ####. In ####, QCI achieved a significant reduction in financial risk; including lower leverage, strengthened interest/fixed charge coverage, and positive free cash flow ( FCF). QCI s ratings are constrained by the concentration of its business portfolio on NBPC ODM, and its low operating EBITDAR margin (#.#% in ####), pressured by peer c ompetition and customer order swing s. The company s...
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