Fitch cuts Wolters Kluwer outlook to stable

Fitch Ratings said it revised Wolters Kluwer NV's outlook to stable from positive following the announcement of its acquisition of the information management business of NDCHealth for $382 million in cash.

Fitch said it also affirmed the company's ratings at senior unsecured BBB and short-term F2. The subordinated notes are affirmed at BBB-.

The acquisition is part of the company's strategic objective to grow the group's health publishing business and adds to its range of health care business intelligence products. This acquisition follows a series of smaller acquisitions, the largest of which was the DeAgostini Professionale and Utet Professionale acquisition in Italy, for a cash cost of €295 million.

Fitch said these cash acquisitions are expected to increase the group's leverage at fiscal year 2005, based on the ratio of net debt to EBITDA, to 3.3, compared to its expectation for fiscal year 2005 at the date of the 2004 results announcement of 2.5.

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