Moody's ups Kinetic Concepts

Moody's Investors Service said it upgraded the ratings of Kinetic Concepts, Inc., including the guaranteed senior secured revolving credit facility due 2009 to Ba2 from Ba3, the guaranteed senior secured term loan B due 2010 to Ba2 from Ba3, the guaranteed unsecured subordinated notes due 2013 to B1 from B2 and the corporate family rating to Ba2 from Ba3.

The outlook is stable.

The agency said the upgrade reflects primarily Kinetic's continued reduction in outstanding debt and growing cash flow, despite an unfavorable court decision on its patent infringement trial with BlueSky, as well as the potential for greater competition in its core wound pressure market.

Moody's said it believes that the company can continue to maintain a strong liquidity position while continuing to generate significant cash flow.

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