S&P: Fresenius on watch

Standard & Poor's said it placed its BB+ long-term corporate credit ratings on Fresenius Medical Care AG and its parent Fresenius AG on CreditWatch negative.

Also on watch is Fresenius Medical's BB- subordinated debt rating.

The rating actions follow Fresenius Medical's announcement that it has agreed to acquire Renal Care Group Inc. (BB-/positive/--) for a net consideration of $3.5 billion, on an all-debt-financed basis.

S&P said the CreditWatch placements reflect Fresenius Medical's and Fresenius' unexpected shift to a significantly more aggressive financial policy, particularly as the group had been in the process of deleveraging its balance sheet for the past three to four years.

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