On Oct. 25, 2004, Standard&Poor's Ratings Services assigned its 'BB' bank loan rating to San Jose, Calif.-based Sanmina-SCI Corp.'s proposed $500 million senior secured facility maturing in 2007. In addition, a recovery rating of '1' was assigned to the facility, indicating expectations for a full recovery of principal in the event of a default. The facility, which is not expected to be drawn, will bolster the company's general liquidity. At the same time, Standard&Poor's affirmed its outstanding rating on the company, including the 'BB-' corporate credit rating. The outlook is stable. The ratings reflect Sanmina's subpar operating performance, low capacity utilization, and volatile end-market demand, particularly in communications and computing end markets. These concerns are partially
