Moody's drops AGA

Moody's Investors Service said it downgraded the corporate family rating of AGA Medical Corp. to B3 from B2.

The outlook is negative.

This concludes the review for downgrade initiated on March 11, the agency said, noting that the downgrade reflects increased credit risk as a result of an aggressive growth strategy that has eroded liquidity and the potential impact of a recent adverse jury verdict in a patent infringement case.

In Moody's opinion, the ratings remain under pressure due to these ongoing challenges which offset the company's underlying fundamental performance.

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