U.S. electrical components provider Artesyn Embedded Technologies Inc. reported double-digit percentage revenue and EBITDA declines for the 12 months ended Dec. 31, 2016. Over the coming year, we expect Artesyn will gradually improve its operating performance, with continuing high financial leverage under private equity sponsor control and technology hardware OEM client concentration. We are downgrading Artesyn to 'B-' from 'B'. We are also lowering the issue-level rating on its senior secured notes to 'B-' from 'B'. Our recovery rating of '3' on the senior secured notes remains unchanged. The stable outlook reflects our expectations for gradually improving operating performance in 2017, with flat to slightly growing revenue performance, about breakeven free cash flow generation, and adequate liquidity, despite declining EBITDA
