S&P ups AGA outlook to positive

Standard & Poor's said it revised the outlook on AGA Medical Corp. to positive from stable.

Per the company's form S-1 registration statement, the agency said that it will issue up to $200 million of common stock and the class A common stock, class B common stock and series A preferred stock will convert to the company's common stock immediately prior to the consummation of the offering.

In addition to this deleveraging event, S&P said that positive results from the company's Respect and Premium trials, which will evaluate the safety and efficacy of the company's Amplatzer patent foramen ovale occluder to prevent recurrent cryptogenic stroke and migraine headaches, respectively, could significantly expand sales of this product.

The B+ corporate credit rating is affirmed, the agency noted, adding that its ratings on AGA reflect the company's narrow product line of medical devices, which largely treat structural heart defects and its modest revenue base.

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