S&P places Kinetic Concepts on watch

Standard & Poor's said it placed its BB+ corporate credit rating on Kinetic Concepts Inc. on

Creditwatch with negative implications.

The Creditwatch placement followed reports that Kinetic Concepts may be subject to a takeover by a private-equity firm, the agency said, adding that it bases its Creditwatch listing entirely on widely reported news items.

"In our opinion, a highly leveraged transaction could weaken Kinetic Concepts' credit metrics from current levels," said S&P credit analyst Jesse Juliano.

The agency noted that it expects Kinetic Concepts to maintain an intermediate financial risk profile, keeping debt leverage at less than 3x, to maintain the current rating.

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