Fitch: Abbott on watch

Fitch Ratings said it placed Abbott Laboratories' long-term ratings on negative watch.

In addition, Fitch said it affirmed Abbott's short-term ratings at F1.

Although Abbott has significantly reduced debt and leverage since May 2011, the proposed spinoff of its proprietary pharmaceutical business still leaves uncertainty regarding the true profitability of legacy Abbott and its ultimate capital structure, Fitch said.

According to Fitch, the company will need to allocate significant debt to the proprietary pharmaceutical business in order to keep its A+ credit rating.

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