TEXT-S&P rates Roper Industries notes 'BBB'
Nov 15 - Standard & Poor's Ratings Services today it assigned its 'BBB' issue-level rating to Roper Industries Inc.'s proposed senior unsecured notes, which the company plans to raise in two tranches due 2017 and 2022, respectively, under a universal shelf filing dated Nov. 15, 2012. The rating is the same as the corporate credit rating on Roper. The company expects to use the proceeds to repay outstanding debt under its $1.5 billion unsecured revolving credit facility due 2017, which the company had drawn to fund the acquisition of Sunquest Information Systems Inc. in August 2012. The proposed new notes contain a change-of-control provision. The ratings on Roper reflect our view of the company's "satisfactory" business risk profile and "intermediate" financial risk profile. The company has made frequent acquisitions, which exposes it to credit risk. For example, Sunquest, a maker of diagnostic and laboratory software, is a business aligned with Roper's strategic goal to grow through acquisitions that are high margin and are low capital intensive businesses. Still, we expect Roper to manage its growth and acquisition strategies such that total debt to EBITDA remains within our expectation for the rating of about 2x to 2.5x and stays consistent with our view of an intermediate financial risk profile while maintaining "adequate" liquidity. Characteristics of Roper's business profile include its leading positions in profitable niche markets and diversity of products, end markets, and geographic operations. RELATED CRITERIA AND RESEARCH -- Business Risk/Financial Risk Matrix Expanded, Sept. 18, 2012 -- Summary: Roper Industries Inc., Aug. 15, 2012 -- Liquidity Descriptors For Global Corporate Issuers, Sept. 28, 2011 -- 2008 Corporate Criteria: Analytical Methodology, April 15, 2008 RATINGS LIST Roper Industries Inc. Corporate Credit Rating BBB/Stable/-- Ratings Assigned Roper Industries Inc. Senior Unsecured sr. unsec. nts due 2017 BBB sr. unsec. nts due 2022 BBB Complete ratings information is available to subscribers of RatingsDirect on the Global Credit Portal at www.globalcreditportal.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com. Use the Ratings search box located in the left column.