Fitch: Dasa outlook positive

Fitch Ratings said it affirmed the BB foreign- and local currency issuer default ratings of Diagnosticos da America SA as well as its A+(bra) national scale rating and the BB rating on its $250 million senior unsecured notes due in 2018.

The outlook has been revised to positive from stable.

The positive outlook reflects the expectation that Dasa will continue to increase its cash flow generation through a combination of synergies from recent acquisitions, improvements in its costs structure and increasing demand for diagnostics services, according to the agency.

The outlook also incorporates some acquisitive growth given the company's ability absorb these and still maintain a strong financial profile for the rating category, the agency said.

Ratings are supported by the company's leading position in the Brazilian medical diagnostics industry, the agency noted.

Ratings also consider the company's conservative financial strategy, historically using a mix of debt and equity to fund growth, Fitch said.

Dasa has a total debt-to-EBITDA ratio of 2.1x.

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