Fitch gives Quest Diagnostics notes BBB

Fitch Ratings said it assigned a BBB rating to the senior unsecured notes issued by Quest Diagnostics Inc. Quest’s issuer default rating is BBB.

“Quest Diagnostic’s BBB rating reflects the issuer’s leading position and scale in the competitive U.S. clinical laboratory industry. Quest’s reach and scale provide meaningful competitive advantages on fixed costs and supply sourcing particularly when looking to maintain or grow margins amid pricing headwinds. Strong cash conversion of operating EBITDA enables the issuer to maintain debt leverage around 2.5x despite allocating most FCF toward acquisitions, dividends and share repurchases,” Fitch said in a press release.

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