On Nov. 27, 2006, Standard&Poor's Ratings Services revised its outlook on St. Petersburg, Fla.-based Jabil Circuit Inc. to negative from stable. The corporate and senior unsecured credit ratings are affirmed at 'BBB-'. The outlook revision reflects a series of announcements from the company that collectively absorb much of the company's capacity to weather additional operating or financial challenges at the current rating level. Over the past several months, Jabil has disclosed operating miss-steps that caused a 12% decline in EBITDA margin, a $200 million share repurchase program, a $200 million to $225 million restructuring program and, most recently, its largest acquisition in a number of years, the $880 million tender offer for Green Point Enterprises. During this period,
