Moody's rates Becton Dickinson notes A2

Moody's Investors Service said it assigned an A2 rating to Becton Dickinson and Co.'s proposed $1 billion senior unsecured notes, and affirmed its existing ratings.

The outlook is stable.

The proceeds will be used for general corporate purposes, including the partial funding of its recently announced $1.5 billion 2011 share buyback initiative.

While this incremental debt reduces Becton Dickinson's financial flexibility to engage in additional debt-funded initiatives, the agency said it believes the company's future cash flow generation should be able to support the ratings at the A2 level.

The ratings reflect the company's good size, relatively diverse offerings and leading market positions in several medical, diagnostic and bioscience product areas, Moody's said.

Although the company does face near-term challenges stemming from pricing pressure and declining use rates due to the economy, the agency said it believes that financial strength and leverage metrics should remain adequate.

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