S&P drops Danaher

S&P said it lowered Danaher Corp. to BBB+ from A and removed it from CreditWatch negative.

Danaher completed its acquisition of General Electric Co.'s biopharma business, now known as Cytiva, for $21.4 billion, including an assumption of roughly $400 million in pension liabilities.

“The transaction, funded with a combination of cash and debt, significantly increases Danaher's adjusted net leverage,” the agency said in a news release.

“We project it to be roughly 3.7x at the end of 2020, dropping to the 3x area by end of 2021, versus roughly 2.5x the company previously maintained.”

The agency lowered the senior unsecured debt ratings to BBB+ from A and the short-term and commercial paper rating to A-2 from A-1.

The outlook is stable.

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