Moody's rates Abbott notes A1

Moody's Investors Service said it assigned an A1 rating to Abbott Laboratories' $3 billion senior note offering.

The outlook is stable.

Proceeds will be used to refinance commercial paper borrowing used to fund the closing of the Advanced Medical Optics transaction.

Advanced Medical Optics, Inc. has B2 corporate family and probability-of-default ratings, Ba2 (LGD2, 14%) $300 million senior secured revolver due 2013, Ba2 (LGD2, 14%) $445 million senior secured term loan due 2014, B2 (LGD3, 46%) $250 million senior subordinated notes due 2017 and Caa1 (LGD5/80%) $246 million convertible senior subordinated notes due 2024.

"In light of relatively high short-term borrowing needs, this debt offering helps Abbott maintain a sufficient liquidity profile," Diana Lee, a senior credit officer at Moody's, said in a statement.

Abbott's A1 ratings reflect its already broad spectrum of healthcare products as well as relatively low exposure to patent expirations, the agency said.

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