Moody’s cuts Hill-Rom notes, rates CFR Ba2

Moody's Investors Service said it assigned a Ba2 corporate family rating, Ba2-PD probability of default rating and SGL-2 speculative grade liquidity rating to Hill-Rom Holdings, Inc.

The agency also downgraded Hill-Rom's senior unsecured notes to B1 from Baa3.

These actions follow Hill-Rom's closing on its acquisition of Welch Allyn Holdings, Inc. Previously assigned provisional Ba2 senior secured ratings and the provisional B1 senior unsecured rating were converted to Ba2 and B1, respectively.

The outlook is stable.

"Despite benefits of increased scale and product diversity, the incremental debt associated with Welch Allyn has substantially weakened Hill-Rom's credit metrics, which no longer support an investment grade rating," Moody's senior credit officer Diana Lee said in a news release.

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