Moody's may cut Hillenbrand

Moody's Investors Service said it placed Hillenbrand Industries' credit ratings under review for possible downgrade following the filing of a Form 10 for Batesville Holdings, Inc.

Hillenbrand previously announced that it would separate its two operating companies, Hill-Rom, the company's healthcare equipment business and Batesville Casket, the company's death care subsidiary, the agency said.

Moody's said it understands that the separation is expected to be completed by February 2008, at which time Hillenbrand will change its name to Hill-Rom Holdings, Inc. and Batesville Holdings will change its name to Hillenbrand, Inc.

Moody's added that its review will consider primarily the following: (1) Hill-Rom's strategy for growth, (2) its financial policies and proposed long term capital structure, (3) the degree of product concentration risk and (4) underlying revenue trends and sustainability of market position.

Ratings placed under review for possible downgrade include A3 senior unsecured notes, A3 revolving credit facility, provisional A3 senior note shelf rating, provisional Baa1 subordinated note shelf rating and provisional Baa2 preferred stock shelf rating.

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