Moody's rates Hospira notes Baa3

Moody's Investors Service said it assigned a Baa3 rating to Hospira, Inc.'s new $500 million note offering and affirmed the company's senior unsecured debt rating at Baa3.

The outlook is stable.

Proceeds will be used for early redemption of the company's currently outstanding $500 million 5.55% notes due 2012.

Moody's said the affirmation is based on the company's solid cash flow to debt measures following de-leveraging, growing global presence in the specialty injectable pharmaceutical space and relatively good product pipeline.

These strengths are partially offset by competitive challenges facing oncology and anti-infective products, reflected by heightened pricing pressures, as well as recent regulatory matters that have hurt sales of certain medical and pharmaceutical products, according to the agency.

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