S&P rates Zimmer notes A-

Standard & Poor's said it assigned its A- issue-level rating to Zimmer Holdings Inc.'s proposed $550 million senior unsecured notes.

The notes will be issued in two tranches maturing in 2014 and 2021 and will rank equally with all other senior unsecured debt obligations of Zimmer Holdings.

S&P said it expects the company to use the proceeds from the notes to repay a substantial portion of the outstanding borrowings under its credit facility and for general corporate purposes. The agency said it expects the offering will not meaningfully increase Zimmer's total adjusted debt to EBITDA.

S&P also said it believes debt leverage will remain consistent with the company's minimal financial risk profile.

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