S&P rates Covidien loans A-

Standard & Poor's said it assigned an A- rating to the $1.5 billion or unsecured debt financing of Covidien International Finance SA, a wholly owned subsidiary of Covidien Ltd. Covidien International.

The agency affirmed the A- corporate credit rating.

The outlook is stable.

Proceeds will be used to repay a substantial portion of a bridge loan for the June 29 spinoff from Tyco International Ltd.

S&P said the ratings reflect a satisfactory business profile, stable positions in its segments and the large contribution of disposable products to its revenue base.

These strengths are somewhat offset by the commodity-like nature of certain products and by competitive pressures, the agency said.

The issuer's adjusted debt-to-EBITDA ratio is about 2 times for the 12 months ended June 29.

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