S&P cuts Hill-Rom

Standard & Poor's said it lowered its corporate credit rating and debt ratings on Hill-Rom Holdings Inc. (formerly Hillenbrand Industries Inc.) following the completion the spin-off of its Batesville Casket funeral service business effective April 1.

Hill-Rom assumed Hillenbrand's outstanding senior unsecured notes totaling about $350 million, the agency noted, adding that the total debt will be reduced to $130 million following the tender of about $220 million of 4.5% debentures using the proceeds of a $250 million dividend from Hillenbrand Inc.

The corporate credit rating was lowered to BBB- from A-, reflecting the decline in business diversity, S&P said, adding that it also lowered the ratings on the company's outstanding senior unsecured notes and $1 billion shelf filed in 2003 to BBB- from A-.

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