On Sept. 25, 2007, Standard&Poor's Ratings Services revised its outlook on San Jose, Calif.-based Sanmina-SCI Corp. to negative from stable, as a result of continued operating weakness and increasing leverage. The corporate credit and senior unsecured ratings are affirmed at 'B+', and the subordinated debt rating is affirmed at 'B-'. Sanmina's EBITDA margin slipped to 2.3% in the June quarter from 3.4% in fiscal 2006. Expectations are for earnings to continue at depressed levels for the near term. Weakness is attributed to volume declines and production inefficiencies at the company's printed circuit board (PCB) and enclosures businesses. Although debt levels have been flat for the past four quarters and are expected to decline over the next two quarters
