Moody's lifts Thermo debt, rates notes Baa1

Moody's Investors Service said it upgraded the senior unsecured rating of Thermo Fisher Scientific, Inc. to Baa1 from Baa2 and assigned Baa1 ratings to the proposed $750 million senior notes due 2012 and 2014.

The outlook remains positive.

The proposed notes will be used to repay debt balances under the callable $300 million 6.75% senior subordinated notes due 2014 and tender for the $295 million 2.5% senior convertible notes due 2023.

The agency said the upgrade reflects the company's solid operating performance throughout the current economic downturn relative to peers, credit metrics that are strong for the rating category and excellent liquidity.

The company faces pressures on the capital equipment side of the business and exposure to industrial markets, Moody's said, and other credit risks include substantial technological and obsolescence risks in many of the company's products.

The positive outlook highlights the potential for a further upgrade as the economy improves, the company's capital equipment businesses stabilize and industrial customer demand strengthens, the agency added.

© 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.