Highly competitive operating environment that includes meaningfully larger players Exposure to cyclical and volatile end markets Meaningful client concentration Exposure to faster-growing, higher-margin industrial, automotive, and medical end markets Some differentiated component products Leverage estimated at 1.9x as of Oct. 1, 2016 Cash balance of $398 million Expected free operating cash flow (FOCF) to debt in the mid- to high 20% range in fiscal 2017 (ending September) The positive outlook reflects our improved view of San Jose, Calif.-based Sanmina Corp.'s position in the electronics manufacturing services (EMS) industry relative to that of rated peers, our expectation for consistent operating performance, and adjusted leverage in the high 1x area. We could raise the rating over the next 6 months if the
