Fitch rates Fisher Scientific loan BBB

Fitch Ratings said it assigned Fisher Scientific International Inc. a BBB- issuer default rating, a BBB- senior unsecured debt rating, a BB+ subordinated debt rating and a BBB rating to the company's secured credit facility.

The outlook is stable.

The ratings reflect the firm's strong brand, solid free cash flow - roughly $410 million for the latest 12 months ended Sept. 30 - and manageable capital needs, the agency said.

The ratings also reflect the potential for meaningful acquisitions. The company's improved profitability and financial position since its acquisition of Apogent have also added to the credit profile of the firm.

Targeted acquisitions could be funded, in part, by cash on hand and free cash flow. Larger acquisitions would likely require the assumption of additional debt, the agency said.

At Sept. 30, 2005, Fisher Scientific had $189 million in cash, $259 million of debt maturing through 2009, a latest 12 months EBITDA to interest ratio of 8.1x and a total debt to EBITDA ratio of 2.4x.

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