S&P rates Hill-Rom notes BB-

Standard & Poor’s said it assigned a BB- issue-level rating and 6 recovery rating to Hill-Rom Holdings Inc.’s new $425 million unsecured notes that mature in 2023. The 6 recovery rating reflects an expectation of negligible (0%-10%) recovery in the event of default.

“Our BB+ corporate credit rating on Hill-Rom Holdings Inc. is unaffected by this new debt issue as our assessment of the company's financial risk as ‘aggressive’ already factors in pro forma leverage peaking above 4x following the Welch Allyn acquisition. Our ‘satisfactory’ business risk profile assessment incorporates added diversity to the company’s product portfolio following the acquisition,” S&P said in a news release.

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