Fitch rates St. Jude A

Fitch Ratings said it assigned an A issuer default rating and F1 short-term issuer default rating to St. Jude Medical, Inc., A ratings to its senior unsecured bank debt and senior unsecured debt and an F1 rating to its commercial paper.

The outlook is stable.

The agency said the ratings are supported by St. Jude's four business segments, which have been competitively positioned to generate consistent revenue growth, relatively stable margins and resulting cash flow growth. Fitch expects the company will pursue acquisitions and share repurchases with an eye toward maintaining a financial profile consistent with an A rating.

At the same time, the ultimate outcome of health-care reform remains uncertain and could pose incremental risks to margins and possibly volume for the medical device industry, Fitch added.

For the last 12 months ended in March, leverage was 0.74 times.

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