On Jan. 19, 2007, Standard&Poor's Ratings Services left its 'BB-' ratings on San Jose, Calif.-based Sanmina-SCI Corp. on CreditWatch with negative implications, where they were placed on Aug. 14, 2006, because of delayed financial-statement filings. While the company has filed required statements, the ratings remain on CreditWatch, reflecting concerns about the company's deteriorating profitability levels, negative cash flow and weakening credit protection measures. For the quarter ended Sept. 30, 2006, EBITDA margin dropped to about 2.7% from a historic range of between 3.5% and 4.0%, after adjusting for one-time charges related to the termination of its original design manufacturer initiative and the stock-option investigation. Weakened profitability is attributable to ongoing inefficiencies in the migration of production from closed
