S&P puts Orthofix on watch

Standard & Poor's said it revised the CreditWatch implications on its BB- corporate credit rating for Orthofix International NV to negative from positive.

The agency said that the revision reflects its concerns with the company's agreement to acquire spinal implant and biologic company Blackstone Medical Inc. for $333 million.

S&P added that the rating on Orthofix was previously on CreditWatch with positive implications, recognizing the progress that the company had made in improving its credit profile by repaying debt.

Despite Orthofix's impressive debt repayment, S&P said it remained concerned with the potential for large debt-financed acquisitions and we were waiting to discuss the company's growth strategy with management before reviewing its rating for a potential upgrade and given the announced Blackstone Medical acquisition, a higher rating is no longer possible in the near term.

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