Jabil Inc.'s Senior Unsecured Notes For Refinancing Rated 'BBB-'

SAN FRANCISCO (S&P Global Ratings) Jan. 9, 2018--S&P Global Ratings today assigned a 'BBB-' rating to St. Petersburg, Fla.-based contract manufacturer Jabil Inc.'s proposed unsecured notes. The rating is the same as our corporate credit rating on the company and our ratings on its existing unsecured notes, because its capital structure consists of only senior unsecured debt issued at the parent level and there are no significant elements of subordination. We expect the company to use the proceeds to repay its $400 million senior notes due in March 2018. Our 'BBB-' corporate credit rating on Jabil is unchanged and reflects its good position in the global outsourced manufacturing industry, focus on faster-growing, higher-margin end markets, and leverage of 2.2x and

...SAN FRANCISCO (S&P Global Ratings) Jan. 9, 2018--S&P Global Ratings today assigned a '###-' rating to St. Petersburg, Fla.-based contract manufacturer Jabil Inc.'s proposed unsecured notes. The rating is the same as our corporate credit rating on the company and our ratings on its existing unsecured notes, because its capital structure consists of only senior unsecured debt issued at the parent level and there are no significant elements of subordination. We expect the company to use the proceeds to repay its $400 million senior notes due in March 2018. Our '###-' corporate credit rating on Jabil is unchanged and reflects its good position in the global outsourced manufacturing industry, focus on faster-growing, higher-margin end markets, and leverage of 2.2x and free operating cash flow (FOCF) to debt (adjusted for proceeds from asset sales) in the mid-teens as of Nov. 30, 2017. Jabil's high customer concentration with 24% of revenues coming from Apple, competitive and cyclical industry...

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