On Jan. 30, 2006, Standard&Poor's Ratings Services assigned its 'B' senior subordinated rating to San Jose, Calif.-based Sanmina-SCI Corporation's $600 million senior subordinated notes due 2016. Proceeds from the notes, together with cash on hand, will be used to tender for all of the company's 10 3/8% senior secured notes due 2010. Outstandings under the notes to be tendered are about $750 million. Our ratings on the company reflect profitability that lags the company's electronic manufacturing services (EMS) peers; excess capacity in high-cost geographies; and slow end-market demand in communications and desktop computer end markets. These concerns partly are offset by the company's top-tier business position. Sanmina-SCI is a leading provider of EMS for the computing, telecommunications, and
