Moody's: St. Jude notes Baa1

Moody's Investors Service said it assigned a Baa1 rating to St. Jude Medical Inc.'s new senior unsecured note offering and a provisional Baa1 to the company's newly established senior unsecured shelf.

The proceeds will be used to refinance existing debt, including commercial-paper borrowings, Moody's said.

The company's existing Baa1 long-term and prime-2 short-term ratings are unchanged.

The agency said it does not expect St. Jude Medical to incur incremental debt with this transaction, as proceeds will be used to repay existing debt.

The ratings reflect the company's leading positions in several products lines that focus on cardiac disease, solid operating cash flow and moderate - albeit increasing - debt levels, Moody's said.

The ratings also reflect high concentration in the cardiac rhythm management market, which will remain under pressure, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.