MUMBAI (Thomson Financial) - Moody's Investors Service said it has confirmed
the 'A1/Prime-1' ratings on Medtronic Inc with a stable outlook after the
medical device maker completed the 4.2 bln usd acquisition of Sunnyvale,
California-based Kyphon Inc.
This concludes Moody's rating review for possible downgrade that was
initiated on July 27.
The confirmation is based primarily on the expectation that Medtronic will
fund the acquisition with internally generated cash, and will not assume any
permanent debt in conjunction with the closing of this transaction, Moody's
added.
Medtronic's liquidity will remain solid and its key credit metrics should
reach ranges appropriate for an 'A1' rating, the ratings agency said.
Moody's withdrew Kyphon's existing ratings, which were previously affirmed
in conjunction with the announced transaction in July.
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