S&P: Alaris on positive watch

Standard & Poor's said it placed its BB- corporate credit rating, its BB senior secured bank loan rating, and its B subordinated debt rating on Alaris Medical Systems Inc. on CreditWatch with positive implications.

"The CreditWatch listing follows the announcement that Cardinal Health Inc., a large medical products distribution firm, will acquire the innovative manufacturer of medication safety products for $2 billion," said S&P credit analyst Jill Unferth.

Upon completion of the transaction, Cardinal is expected to assume Alaris' debt, including its $175 million 7.25% senior subordinated notes due in 2011, and the ratings will be raised to levels consistent with Cardinal's credit quality.

At March 31, Alaris had $338 million of debt outstanding.

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