Fitch rates St. Jude notes A

Fitch Ratings said it assigned an A rating to St. Jude Medical, Inc.'s proposed $450 million bond offering.

The outlook is stable.

Proceeds are expected to be used for general corporate purposes, including the possible repayment of debt.

Ratings are supported by the hospital's four business segments that are competitively positioned to generate profitable growth with relatively stable margins, according to the agency.

Fitch said it expects St. Jude to operate with a total debt-to-EBITDA ratio of about 1.2 times in 2010, which is within the range of longer-term forecasts. Leverage was 1.28x for the 12 months ended Jan. 2.

Legislative and regulatory initiatives will continue to influence operational, financial and strategic actions within the sector, which may ultimately affect profitability and credit profiles within the sector, the agency noted.

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