The rating on Batesville, Ind.-based Hill-Rom Holdings Inc. reflects the company's fair business risk profile and modest financial risk profile. We believe the company's fiscal 2011 revenues could grow by mid-single digits and could be further boosted by moderate-sized acquisitions. The rating also reflects the company's well-established but narrow business position, highlighted by its market-leading position in its hospital beds and surfaces business, strong liquidity, and modest financial risk profile. Negative factors include the company's reliance on its beds and surfaces operations, its exposure to U.S. hospitals' improved but still uncertain capital budgets, and the possibility that Hill-Rom's acquisition strategy could become more aggressive following the expiration of the company's distribution agreement. As a result of the spin-off of its...
Companies mentioned in this report are:
- Hill-Rom Holdings Inc.
- Hillenbrand Inc.
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