Moody's affirms AGA; outlook up to positive

Moody's Investors Service said it affirmed the ratings of AGA Medical Corp., including the corporate family and probability of default ratings at B3 and senior secured credit facilities ratings at B2.

The outlook was changed to positive from negative.

The change in the outlook to positive from negative primarily reflects the settlement on March 29 of the patent infringement lawsuit between AGA and Medtronic, the agency said, adding that AGA has agreed to make payments amounting to $35 million over the next four years to Medtronic with the first payment of $7.5 million due in April.

The B3 corporate family rating takes into consideration the company's high debt leverage, small size and product concentration, and aggressive expansion strategy, Moody's added.

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