S&P rates Covidien CP program A-2

Standard & Poor's said it assigned an A-2 rating to Covidien International Finance SA's $1.5 billion commercial paper program. Covidien International, which owns the operating subsidiaries of Covidien Ltd., is the primary debt-issuing company.

The A- corporate credit rating and stable outlook for Covidien Ltd. are affirmed.

Proceeds from the commercial paper issuance will be used to pay down the company's credit facility.

Ratings reflect a satisfactory business profile, as evidenced by a diverse portfolio of medical products, stable positions within the company's health care segments and the large contribution of disposable products to its revenue base, the agency said.

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

The issuer has an adjusted debt-to-EBITDA ratio at 1.8 times.

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