Moody's rates Fisher Scientific

Moody's Investors Service said it assigned a prospective Ba3 rating to Fisher Scientific International Inc.'s proposed $250 million of senior subordinated notes due 2014 that will be used primarily to tender for Apogent's 6.5% senior subordinated notes due 2013.

While Fisher's (Ba3 senior implied) existing ratings remain on review for possible upgrade, Moody's said it expects that they will move up by one level upon completion of the proposed merger in early August. Moody's now also expects that Fisher's existing senior unsecured rating, issuer rating and senior subordinated debt rating will each move up by two levels upon completion of the proposed merger.

The reasons supporting improved ratings include the following: The bulk of the debt is at a single entity in the Fisher capital structure and the senior implied rating is well placed in the Ba2 rating category. Finally, when looking at Fisher/Apogent on an enterprise value basis relative to the company's pro forma total debt, Moody's believes that there is likely to be more than adequate coverage.

Moody's has already assigned a prospective rating of Ba2 to Fisher Scientific International Inc.'s $500 million senior secured guaranteed revolver due 2009, $250 million senior secured guaranteed term loan A due 2009, $150 million senior secured guaranteed term Loan B due 2011, and $300 million senior secured delayed-draw term loan A due 2009.

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