S&P affirms Thermo Electron

Standard & Poor's said it affirmed its ratings on Thermo Electron Corp., including the BBB+ corporate credit rating.

All ratings were removed from CreditWatch, where they were placed with negative implications May 8, in light of the company's proposed merger with more leveraged Fisher Scientific International Inc. (BBB-/Watch positive).

The outlook is positive.

S&P noted that the combined company, to be named Thermo Fisher Scientific Inc., will benefit from a greater diversity of products and services, as Fisher's portfolio mainly comprises consumables and small bench top instruments, while Thermo specializes in technically advanced, high-priced instruments.

At the close of the merger, S&P said it expects total debt to EBITDA to approximate 2.1 times and funds from operations to total debt to be around 36%.

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