Fitch upgrades Thermo, rates notes A-

Fitch Ratings said it assigned an A- rating to Thermo Fisher Scientific Inc.'s proposed new three- and five-year unsecured notes and upgraded its issuer default rating to A- from BBB+, senior unsecured debt to A- from BBB+ and subordinated debt to BBB+ from BBB.

The outlook is stable.

The proceeds from the notes are expected to be used to redeem the outstanding $300 million 6.75% senior subordinated notes due 2014 and tender for the $295.36 million senior convertible notes due 2023 at a premium over the conversion value.

The agency said the upgrade reflects Thermo Fisher's strong credit metrics, operational stability and diminishing event risk, and the company benefits from a relatively stable operating environment. The total debt-to-EBITDA ratio was 1.07 times for the last 12 months ended Sept. 26.

Although Fitch believes Thermo Fisher will continue to actively pursue acquisitions and other investment opportunities, the agency said the company has increased in scale to the point where the universe of acquisition opportunities that would significantly affect its credit metrics has diminished.

© 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.