S&P: St. Jude view positive

Standard & Poor's said it revised the outlook on St. Jude Medical Inc. to positive from stable and affirmed the BBB+ corporate credit rating.

The possible upgrade reflects the company's resilience through difficult industry conditions and its improving financial profile, the agency said.

The rating reflects its portfolio of leading medical devices, which generates solid cash flow, its conservative financial policies and strong debt-protection measures, S&P said.

These factors mitigate the company's vulnerability to technological change within its relatively narrow disease focus areas, the risks of competing with larger and diversified rivals, and its exposure to reimbursement risk and pricing pressures typical for the health care industry, the agency said.

Debt leverage was 1.4 times for the 12 months ended Sept. 30 and continues to improve as a result of EBITDA growth, S&P said.

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