Fitch: Covidien view negative

Fitch Ratings said it affirmed Covidien International Finance SA's issuer default rating at A.

The ratings were removed from negative watch and assigned a negative outlook.

The actions follow the company's spin-off of its pharmaceutical business and apply to about $5.1 billion of debt outstanding as of March 29.

Fitch said the negative outlook reflects its uncertainty regarding debt leverage (total debt/EBITDA) post the spin-off of the company's pharmaceuticals business, as significant debt reduction in the near term appears unlikely given the company's acquisitive posture and cash deployment strategy.

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