S&P rates LabCorp notes BBB+

Standard & Poor's said it assigned a BBB+ rating to Laboratory Corp. of America Holdings' proposed $925 million senior unsecured notes, which will be issued in two tranches due in 2016 and 2020.

The corporate credit rating is BBB+.

The outlook is stable.

Proceeds will be used to fund a portion of the acquisition of Genzyme Genetics, a business unit of Genzyme Corp., and for general corporate purposes.

As of June 30, LabCorp's debt-to-EBITDA ratio is 1.4x.

The rating reflects the company's intermediate financial risk profile and its satisfactory business risk profile, partly the result of its narrowly focused position, albeit as one of the two largest clinical laboratory services providers, the agency said.

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