Ratings on Sanmina-SCI Corp. are based on risks associated with the challenge of integrating the operations of SCI Systems with Sanmina in the midst of a severe downturn in communications and computing markets and weak operating performance. These concerns are only partially offset by the merged entity's enhanced industry position as the third largest electronic manufacturing services (EMS) provider, more diversified business mix, well established relationships with leading original equipment manufacturers, (OEMs) and moderate financial profile. Standard&Poor's believes significant management attention and effort will be needed to successfully integrate the operations of the companies. This concern is exacerbated by difficult industry conditions that could persist until at least mid 2002. Operating performance of both companies deteriorated throughout 2001
