Rapid revenue growth in Artesyn Embedded Technologies Inc.'s consumer segment has materially constrained liquidity due to increased capital expenditures and growing inventory levels, leading to combined cash and ABL availability of approximately $50 million as of June 30, 2018. Although we expect working capital outflows to reverse following the fourth fiscal quarter, we anticipate net negative free cash flow for the year. We revised our outlook on Artesyn to negative from stable and affirmed the 'B-' issuer credit rating due to the weaker-than-expected liquidity and cash generation. The negative outlook reflects our view that greater customer concentration and consumer revenue mix will drive negative free cash flow for the year and seasonal liquidity constraints, pressuring the company's ability to service
