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S&P rates Quest Diagnostics note BBB+, ups some ratings
Standard & Poor's said it assigned its BBB+ rating to Quest Diagnostics Inc.'s proposed senior note issue and raised the company's corporate credit and senior unsecured debt ratings to BBB+ from BBB.
The outlook is stable.
Proceeds from the notes will be used to finance the $934 million purchase of clinical laboratory LabOne Inc.
The rating and upgrade reflects S&P's increased confidence in the company and in its financial policies, which allow for growth by acquisition while maintaining solid intermediate-risk credit metrics, the agency said.
S&P also said the factors are somewhat mitigated by the company's acquisitive growth strategy - Quest attained its leading position primarily by purchasing rivals at a cost of $3.9 billion since 1999 - and narrow business focus.
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