Fitch might lower Abbott

Fitch Ratings said it placed Abbott Laboratories' ratings on Negative Rating Watch following its announced intention to acquire Alere, Inc.

Abbott had $8.4 billion in outstanding debt at Sept. 30, 2015.

Abbott plans to acquire Alere for roughly $5.8 billion cash and about $2.6 billion of assumed net debt and intends to finance the transaction with debt.

Fitch said it believes the acquisition makes sense strategically, as the acquisition will increase Abbotts's presence in point of care diagnostics and has prospects to expand Alere's products in international markets. Abbott already has a strong position in the medical diagnostics market and a demonstrable record of successfully acquiring and integrating acquisitions.

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