Jabil Circuit Inc. Liquidity Assessment Revised To Strong From Adequate; 'BBB-' Rating Affirmed; Outlook Stable

We are revising our liquidity assessment for U.S. outsourced manufacturer Jabil Circuit Inc. to strong from adequate reflecting the company's $912 million cash balance and nearly full availability under its $1.5 billion revolving credit facility, as well as expected free cash flow improvement. We are affirming our 'BBB-' corporate credit rating on Jabil. The stable outlook reflects our expectation that Jabil's focus on growth in higher-margin manufacturing businesses will enable it to achieve revenue and EBITDA growth over the next 12 to 24 months, despite the potential for some volatility due to large customer programs. In addition, the rating incorporates our expectation that Jabil will maintain moderate financial policies and significant cash balances. NEW YORK (S&P Global Ratings) Sept. 27,

...+ We are revising our liquidity assessment for U.S. outsourced manufacturer Jabil Circuit Inc. to strong from adequate reflecting the company's $912 million cash balance and nearly full availability under its $1.5 billion revolving credit facility, as well as expected free cash flow improvement. + We are affirming our '###-' corporate credit rating on Jabil. + The stable outlook reflects our expectation that Jabil's focus on growth in higher-margin manufacturing businesses will enable it to achieve revenue and EBITDA growth over the next 12 to 24 months, despite the potential for some volatility due to large customer programs. In addition, the rating incorporates our expectation that Jabil will maintain moderate financial policies and significant cash balances. NEW YORK (S&P Global Ratings) Sept. 27, 2016--S&P Global Ratings today said it affirmed its '###-' corporate credit rating on St. Petersburg, Fla.-based Jabil Circuit Inc. The outlook is stable. At the same time, we affirmed our...

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