Moody's rates Abbott notes A1

Moody's Investors Service said it assigned an A1 senior unsecured debt rating to Abbott Laboratories' proposed offering of $3.0 billion of senior unsecured notes.

Proceeds are expected to be used to repay outstanding commercial paper that was used primarily to acquire KOS Pharmaceuticals in November 2006, the agency said.

At the same time, Moody's noted that all other existing ratings were affirmed.

The outlook remains negative.

In Moody's opinion, the refinancing of a significant amount of short-term debt contributes to Abbott's solid liquidity profile.

Further, Moody's said it recognizes the improvement in cash balances since the Guidant and KOS transactions were initially financed.

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