S&P; Lowers Ratings of Santa Ana’s Ingram Micro

Agency cites weakened profitability. The distributor has been challenged in a highly competitive industry.

Standard & Poor’s on Tuesday lowered ratings on Ingram Micro Inc.’s corporate credit, senior unsecured debt and bank loans, saying the outlook is negative for the Santa Ana distributor of technology products and services.

The ratings were lowered to triple-B-minus from triple-B, reflecting weakened profitability and debt protection measures, S&P; said.

Santa Ana-based Ingram Micro, which logged revenue of more than $28 billion last year, has been challenged by highly competitive industry conditions, S&P; said.

While historical operating margins generally topped 2.5%, intense margin pressures resulted in operating margins of 1.6% in fiscal 1999.

The stock closed at $14.38, down 13 cents a share on the New York Stock Exchange.