S&P upgrades Covidien

Standard & Poor's said it raised Covidien Ltd.'s long-term corporate credit rating to A from A- and its short-term rating to A-1 from A-2.

The outlook is stable.

The agency said the A rating reflects Covidien's strong business risk profile, 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 commodity-like nature of some products and competitive pressures somewhat temper these strengths, S&P added.

For the 12 months ended March 27, the adjusted debt-to-EBITDA ratio was 1.2 times.

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