Standard & Poor's Ratings Services said today that its ratings on ReAble Therapeutics Inc. (B/Stable/--) are not affected by the company's announcement that it intends to purchase the debt and equity of DJO Inc., an orthopedic sports medicine company, for $1.6 billion. The transaction is expected to close in the fourth quarter of 2007.
We believe ReAble could well maintain its current rating, given the improved product diversity and scale the DJO acquisition would provide, Blackstone's intention to supply equity financing, ReAble's already low corporate credit rating, and the probability that lenders will not allow ReAble to increase leverage significantly beyond the current level.
