Fitch rates Agilent notes BBB+

Fitch Ratings said it assigned a BBB+ rating to Agilent Technologies, Inc.'s $400 million senior notes offering. The company has a BBB+ issuer default rating, and the agency rates its senior revolving credit facility and senior notes at BBB+. The outlook is stable.

Proceeds will be used for general corporate purposes, including the repayment of $250 million of notes due Sept. 14, 2012. Pro forma for the $150 million net increase in debt, Fitch estimates the company's ratio of total debt to operating EBITDA to be 1.6 times.

Fitch said the ratings continue to be supported by Agilent's leading positions in faster growing and more stable life sciences and chemical analysis markets; its global footprint; its substantial end-market, customer and technology platform diversification; and its conservative financial policies with sufficient overall liquidity as well as solid and growing annual free cash flow.

The agency's ratings concerns include mature growth rates and trends toward reduced testing within certain electronic measurement markets, substantial research and development requirements to maintain technology leadership and the potential for higher debt levels over time due to anticipated overseas cash build.

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