S&P: Baxter outlook positive

Standard & Poor's said it revised its outlook on Baxter International Inc. to positive from stable and affirmed its A+ corporate credit rating and other ratings.

The agency said the outlook change reflects the company's continued strong operating performance and improving credit metrics despite weak global economic conditions and is supported by the company's large and diverse portfolio and extensive global reach.

The rating on Baxter reflects its strength as a leading manufacturer of diversified and relatively noncyclical medical products, S&P said, adding that the company generates strong recurring revenues from consumables and disposables and has sustained its business profile with extensive worldwide operations, solid distribution channels, a very large and entrenched customer base and low-cost manufacturing.

These strengths mitigate the risks of participation in an industry that is intensely competitive and faces relatively fast innovation cycles for certain products, in the agency's view.

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