The rating on St. Petersburg, Fla.-based Jabil Circuit Inc. reflects the company's diversified end markets and higher profitability than the most of its peers, offset by competitive industry conditions, high leverage for the rating, and somewhat aggressive financial policies. Jabil is a leading provider of manufacturing services to leading electronics original equipment manufacturers. Jabil had about $1.9 billion in total debt outstanding, including operating leases, pension adjustments, and securitizations, at Nov. 30, 2008. Revenues through the November 2008 quarter continued to expand, but Standard&Poor's Ratings Services expects economic conditions will cause a 15% decline in the February 2008 period. Severe competitive pricing pressure has prompted Jabil to disengage from certain consumer-based programs to maintain margins. The balance of
