Moody's: Thermo Electron positive

Moody's Investors Service said it confirmed the debt ratings of Thermo Electron Corp. and its subsidiaries (senior unsecured at Baa2 and subordinated at Baa3) and changed the outlook to positive from stable.

The positive outlook reflects Thermo's: 1) cash flow and operating margin improvement, 2) sizable debt reduction over the last two years, 3) growth within Life & Laboratory Sciences, which represents 62% and 81% of Thermo's trailing-12-month revenue and pre-tax earnings, respectively, as pharmaceutical and biotechnology end markets have continued to improve, and 4) evidence of organic revenue growth in each of the company's business segments.

Ratings confirmed include the Baa2 rating on $150 million (currently $128.7 million outstanding) senior unsecured notes due 2008 and Baa3 rating on $125 million (currently $77.2 million outstanding) guaranteed convertible subordinated debentures due 2007.

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