S&P rates Hospira notes BBB+

Standard & Poor's said it assigned a BBB+ issue-level rating to Hospira Inc.'s senior unsecured notes. The terms of these notes, issued via a supplemental prospectus to a shelf filing of May 1, 2009, will be determined by market conditions.

The corporate credit rating is BBB+.

The outlook is stable.

Proceeds will be used to help redeem $500 million of 5.55% notes due March 2012.

S&P said the rating reflects the agency's view that its operating strength as a large, established medical products manufacturer with a broad portfolio of noncyclical and entrenched products that generate relatively stable and sustainable cash flow supports a satisfactory business risk profile.

This sustainable cash flow also limits the need for external financing, which will translate into leverage measures, over the long term, that are consistent with an intermediate financial risk profile, the agency noted.

Despite product diversity, Hospira's geographic footprint is limited relative to peers, and risks include competitive pressures, technology risk and modest negative headwinds from the recession, the agency said.

In addition, Hospira may seek business expansion opportunities, S&P noted.

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