Our ratings on Sanmina-SCI Corp. reflect Standard&Poor's Ratings Services' expectation that improving operating profitability will lead to moderate reductions in debt leverage over the near term, despite highly competitive industry conditions and a relatively modest earnings base. Sanmina provides vertically integrated electronic manufacturing services for communications, enterprise computing, data storage, medical devices and other industries. Sanmina manufactures and assembles key system components, printed circuit boards and backplanes, to reduce customers' costs and accelerate their time to market. Sanmina exited the low-margin personal computer industry in mid-2008. The company's "vulnerable" business risk profile reflects a narrower end-market focus than its peers, exposure to highly competitive and cyclical industry conditions, and limited revenue visibility. Following the industry downturn in late
