Moody's rates Danaher notes A2

Moody's Investors Service said it assigned an A2 rating to Danaher Corp.'s $750 million public offering of 10-year unsecured notes and affirmed its A2 unsecured and Prime-1 commercial paper ratings.

The outlook is stable.

Proceeds are expected to be used to reduce a like amount of commercial paper outstanding, resulting in no material change in aggregate debt but a beneficial lengthening of the company's debt maturity profile. The reduction in commercial paper outstanding frees a larger portion of the company's $1.45 billion committed revolving credit to be available for other liquidity needs.

Moody's said that while a higher interest rate will apply on the new 10-year issue than that being paid on commercial paper, it expects Danaher's strong coverage ratios and free cash flow characteristics to remain essentially in tact.

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