Fitch cuts Abbott Laboratories IDR to A

Fitch Ratings said it downgraded Abbott Laboratories’ long-term issuer default rating by one notch to A and revised the outlook to stable from negative.

In addition, the company's short-term issuer default rating was affirmed at F1.

Abbott had $8.9 billion in outstanding debt at March 31.

The key rating drivers include:

• Fitch expects Abbott will operate with debt leverage (total debt/EBITDA) of 1.7 times to 1.9 times, consistent with an A credit rating for this issuer;

• Abbott's diversified product portfolio is positioned to deliver mid-single-digit organic growth with incrementally improving margins in the intermediate-term;

• The company's Nutrition, Diagnostics, Medical Devices and Established Pharmaceuticals segments are expected to benefit from the growth in emerging markets; and

• Abbott's ongoing focus on new product introductions across virtually all of its business segments bodes well for growth and margins.

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