S&P: Fisher Scientific on positive watch

Standard & Poor's said it placed its BBB- corporate credit rating for Fisher Scientific International Inc., along with its unsecured debt ratings for the company, on CreditWatch with positive implications, following Fisher Scientific's agreement to merge with Thermo Electron Corp. in an all-stock transaction valued at about $10.6 billion.

The BBB secured bank loan rating and 1 recovery rating on the loan are not on CreditWatch, as the facility will be replaced by a new facility at the combined company, the agency noted.

Affected ratings include the company's senior unsecured debt at BBB- and subordinated debt at BB+.

Given that the combined company is expected to have stronger credit metrics than Fisher alone, it is likely that rating on Thermo Fisher will be higher than the current rating on Fisher Scientific, the agency said.

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