BANGALORE (Thomson Financial) - Moody's Investors Service said it placed the
ratings of Orthofix International NV and its subsidiary Orthofix Holdings Inc
under review for possible downgrade.
The ratings agency said the review reflects weaker-than-expected cash flow
generation compared to Moody's expectations at the time of Orthofix's
acquisition of Blackstone Medical Inc in September 2006.
The review also reflects increased litigation risk stemming from the receipt
of subpoenas regarding government investigations into Blackstone's relationships
with physicians prior to its acquisition by Orthofix.
The rating review will focus primarily on the company's ability to improve
cash flow generation and debt repayment in 2008, the on-going risks of
integrating Blackstone and the developments regarding litigation, Moody's said.
TFN.newsdesk@thomson.com
ash/tsm
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