S&P gives Abbott Laboratories notes AA

Standard & Poor's said it assigned its AA rating to Abbott Laboratories' proposed issue of three-year, five-year and 10-year notes, totaling about $4 billion.

As senior unsecured obligations, they receive the same AA rating as Abbott's corporate credit rating, the agency said, adding that these notes provide long-term funding for the acquisition of Guidant Corp.'s vascular businesses.

Although credit measures will be markedly weakened by these borrowings, S&P said it expects that they will return to a level commensurate with the AA rating within two years.

The corporate credit rating on Abbott is AA/stable/A-1+ and S&P said that this superior investment-grade rating reflects the company's solid positions in a number of diverse health care segments, its strong financial profile and continued robust discretionary cash flow.

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