Moody's: Charles River view negative

Moody's Investors Service said it changed the outlook of Charles River Laboratories International, Inc. to negative from stable, and affirmed its Ba1 corporate family and probability-of-default ratings, senior secured revolving credit facility and term loan at Baa3 (LGD2, 20%), and the speculative grade liquidity rating of SGL-2.

The change in outlook reflects macroeconomic and industry-specific factors that have led to a deceleration in demand from biopharmaceutical companies, according to the agency.

The Ba1 corporate family rating is supported by Charles River's leading market positions in its core markets, good geographic and customer diversity, strong operating cash flow generation and moderate financial policies, Moody's said.

The SGL-2 rating is supported by the expectation for improved free cash flow generation in 2009 due to reduced capital expenditures, $244 million in unrestricted cash and ample cushion on financial covenants, the agency noted.

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