Research Update: Fresenius Medical Care And Parent Ratings Cut To 'BB' On Acquisition Close; Off Watch;Otlk Neg Mar 06
- ID: 1858388
- March 2006
- Standard & Poors
On March 31, 2006, Standard & Poor's Ratings Services lowered its long-term corporate credit ratings on Germany-based health-care companies Fresenius Medical Care KGaA (FMC) and its parent Fresenius AG (Fresenius) to 'BB' from 'BB+', following U.S. antitrust clearance for FMC's acquisition of U.S.-based health-care company Renal Care Group Inc. (RCG; BB-/Positive/--). The ratings were removed from CreditWatch, where they were originally placed on May 4, 2005. The outlook is negative. At the same time, Standard & Poor's assigned its 'BB' senior secured debt rating to FMC's $4.6 billion facilities, which were put in place to finance the acquisition of RCG. The downgrade reflects FMC's and Fresenius' highly leveraged capital structure after completion of the acquisition. This is despite some cash...
Companies mentioned in this report are:
- Fresenius Medical Care AG & Co. KGaA
- Fresenius SE & Co. KGaA
- Renal Care Group Inc.
Action: Outlook: Negative
Action: Removed From CreditWatch
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Product Type: Research Update
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