Abbott Labs' Debt Offering Rated

NEW YORK (AP) -- The three major rating agencies on Tuesday assigned investment-grade ratings to Abbott Laboratories Inc.'s proposed offering of $3 billion of senior unsecured notes.

Moody's Investors Service assigned an "A1" rating to the notes, as proceeds of the offering are expected to help the medical device maker repay outstanding commercial paper used to buy Kos Pharmaceuticals Inc. last year. The refinancing of a significant amount of short-term debt will contribute to the company's solid liquidity profile, Moody's said.

However, Moody's maintained a negative outlook on all the company's ratings, reflecting its concerns that Abbott's current credit profile doesn't provide enough support for more acquisitions.

Fitch Ratings assigned an investment-grade rating of "AA-" to the notes and maintained a negative outlook on the ratings. The rating and outlook reflect the increased leverage needed to complete acquisitions in 2006, Fitch said.

Additionally, Standard & Poor's Ratings Services assigned a rating of "AA" to the pending notes. S&P's outlook is stable.

Shares gained 1 cent to reach $54.03 in afternoon trading.