S&P: LabCorp on positive watch

Standard & Poor's said it placed its ratings on LabCorp, including its BBB corporate credit rating, on Creditwatch with positive implications.

"The Creditwatch listing reflects its belief that LabCorp's planned redemption of about $289.6 million of accreted debt ($369.1 million principal amount at maturity) with on hand cash could improve its liquidity and overall financial risk profile to a level that would merit a ratings upgrade," said S&P credit analyst Jesse Juliano.

In addition to the announced completion of the debt redemption, the agency said it will also wait for the company's results for the quarter ending June 30 before reviewing LabCorp for a ratings upgrade, to gain a better perspective on the impact of the weak U.S. economy on LabCorp's test volumes.

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