Moody's rates Inverness Medical notes B2

Moody's Investors Service said it assigned a B2 rating to Inverness Medical Innovations, Inc.'s proposed $100 million of senior unsecured notes due 2016. Moody's said it also affirmed the company's B1 corporate family and probability of default ratings.

The outlook is stable.

Proceeds from the notes will be used to complete the acquisition of Free & Clear, Inc.

Moody's said that the ratings benefit from Inverness Medical's strong competitive position within the point-of-care diagnostic tools market, credit metrics in line with the B1 corporate family rating and solid cash flow generation.

The ratings remain constrained by Inverness Medical's relatively high leverage in the context of an acquisitive growth strategy, ongoing integration risk associated with material acquisitions and technological risk inherent in the highly competitive medical diagnostics industry, the agency said.

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