Moody's: Orthofix outlook stable

Moody's Investors Service said it changed the outlook for Orthofix International NV and its subsidiary Orthofix Holdings Inc. to stable from negative, and affirmed the B1 corporate family rating, the B2 probability-of-default rating and B1 (LGD3, 30%) rating on its senior secured revolver and loan.

The change reflects the improvement in the spine implant business, which has contributed to margin expansion and improved free cash flow, according to the agency.

The B1 corporate family rating is supported by Orthofix's moderate financial leverage, its ability and willingness to repay debt with free cash flow and the company's strong market position in stimulation, the agency said.

The rating is constrained by the company's modest scale relative to many of its competitors and the risks associated with pending litigation, Moody's noted.

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