S&P: Baxter view down to stable

Standard & Poor's said it revised its outlook on Baxter International Inc. to stable from positive, and affirmed its A+ corporate credit and A-1 short-term credit ratings.

Baxter will be taking a $400 million to $600 million pre-tax charge in the first quarter of 2010 to reflect the product recall, S&P said, and plans to exchange its Sigma Spectrum infusion pumps for the recalled Colleague pumps.

The company's EBITDA, per adjustments, was $3.9 billion in 2009, the agency said. However, the timing of this process and Baxter's success in retaining its customers could result in additional expense and/or loss of the

ancillary consumables business, the agency said.

For these reasons, along with the weakness in the plasma protein market, reduce the likelihood of an upgrade within the next few years, S&P said.

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