Moody's affirms Abbott

Moody's Investors Service said it affirmed the A1/Prime-1 ratings of Abbott Laboratories following the company's announcement that it will acquire Advanced Medical Optics for $2.8 billion, inclusive of net debt.

The outlook is stable.

At the same time, Moody's said it changed the direction of Advanced Medical's rating review from possible downgrade to possible upgrade.

Moody's added that it anticipates that it would withdraw the corporate family and probability of default ratings of Advanced Medical upon closing of the transaction.

If Advanced Medical's debt is assumed by Abbott, the agency said it would need to consider the presence of any guarantees and where the debt falls within Abbott's overall capital structure.

Moody's added that it believes that this transaction helps to further diversify Abbott's portfolio by adding a new segment in the medical device arena.

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