Moody's cuts Baxter

Moody's Investors Service said it lowered the long-term debt ratings of Baxter International Inc. (senior unsecured to Baa1 from A3) and affirmed the company's Prime-2 short-term rating.

The outlook is stable.

Ratings lowered include Baxter International's senior unsecured notes, euro medium-term notes, and industrial revenue bonds to Baa1 from A3 and senior unsecured shelf to prospective Baa1 from prospective A3.

Moody's said its rating action reflects challenges faced in converting patients to Advate; uncertainty related to future strategic direction as a new CEO assumes leadership; sluggish organic growth, particularly in Renal and Biosciences; and high leverage and weak cash flow/debt metrics that may not easily recover.

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