S&P changes Guidant watch to developing

Standard & Poor's said it revised the CreditWatch implications on its ratings for Guidant Corp. to positive from developing. Ratings affected include the A- long-term corporate credit rating, A-2 short-term corporate credit rating, A- senior unsecured debt rating and A-2 commercial paper rating.

This action reflects Johnson & Johnson's announcement that it has agreed to acquire Guidant for $21.5 billion in cash and stock under a revised agreement and S&P's expectation that the merger will likely be consummated.

Johnson & Johnson had previously agreed to acquire Guidant for $25.4 billion in late 2004, but the close of the transaction was delayed due to a subsequent recall of Guidant's pacemakers and implantable defibrillators.

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