Moody's: LabCorp view stable

Moody's Investors Service said it changed the outlook of Laboratory Corp. of America Holdings to stable from positive.

Moody's also affirmed LabCorp's Baa2 senior unsecured rating.

"The change in LabCorp's rating outlook reflects our expectation that leverage will increase given the change in the company's stated tolerance for using incremental debt to fund share repurchases and other investment in the business," Moody's senior credit officer Dean Diaz said in a news release.

"LabCorp will also face headwinds growing revenue and maintaining profit margins in 2013 as the lab sector sees increasing pricing pressure, especially from changes in Medicare reimbursement," Diaz added in the release.

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