S&P: Fresenius still on negative watch

Standard & Poor's said long-term corporate credit ratings on Fresenius Medical Care AG and its parent, Fresenius AG, remain at BB+ and on CreditWatch with negative implications despite Fresenius' announcement that it planned to acquire Helios Kliniken GmbH.

In related action, S&P said it placed its BB+ long-term corporate credit rating on Helios Kliniken GmbH on CreditWatch with negative implications, following the Fresenius bid.

Fresenius plans to acquire a 94% stake in Helios. The control of Helios by Fresenius will constrain the rating on Helios to that of its future parent, S&P said.

The acquisition announcement does not significantly change the underlying scenario as the financing structure chosen is in line with S&P's financial ratio requirements for future ratings, S&P said.

While the Helios acquisition would be slightly positive for the business profile, as evidenced by the BB+ corporate credit rating, the likely impact on the financial profile is neutral, S&P said.

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