Fitch: Owens & Minor Inc.'s Credit Ratings Unaffected by Preannouncement.CHICAGO -- Owens & Minor Inc's. (OMI (1) See Open Market. (2) (Open Microprocessor Initiative, Brussels, Belgium) An organization that functions under the umbrella of the European Commission. It funds projects that research and develop advanced microcontroller technologies. ) ratings remain unchanged by Fitch fitch: see polecat. as follows: -- Issuer Default Rating 'BBB-'; -- Senior unsecured credit facility 'BBB-'; -- Senior unsecured debt Unsecured debt Debt that does not identify specific assets that the debtholder is entitled to in case of default. 'BBB-'. The ratings apply to approximately $400 million of debt. The Rating Outlook is Stable. OMI announced that it will take a one-time charge of $5.2 million related to its diabetes supply business. Bad debt comprises $4.7 million of the charge. The company also stated that dilution from the McKesson acquisition will increase in the range of $9 million-$12 million more than originally expected, as OMI is spending more intensively in integrating and converting the McKesson acute care distribution business. Working capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. are also increasing, as the transition requires OMI to buy some inventory in advance of various distribution facilities changing control to OMI. As a result, debt levels have temporarily increased greater than Fitch's expectations. While these developments are negative, Fitch believes that these issues are temporary and OMI will work through these challenges throughout 2007. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion