Moody's may affirm, lower view on Abbott

Moody's Investors Service said that Abbott Laboratories' debt ratings (A1/Prime-1) would likely be affirmed if the company purchases the vascular assets of Guidant Corp. under terms of a newly amended agreement with Boston Scientific.

However, based on the terms of the amended agreement, which would significantly increase Abbott's initial debt levels, the outlook for Abbott's ratings would likely be changed to negative, Moody's said.

The agency said the assessment assumes no material change to Abbott's operating or financial profile before the closing of this proposed acquisition.

Moody's added an affirmation would reflect Abbott's diversified product portfolio and its relatively low concentration risk associated with its key pharmaceutical products.

However, in Moody's view, Abbott faces prospects for lower sales growth because of generic competition for several of its key pharmaceutical products.

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