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Moody's Upgrades Inverness Ratings

The Associated Press

NEW YORK (AP) — Moody's Investors Service said Thursday it upgraded the corporate family rating of Inverness Medical Innovations Inc. on the medical diagnostic company's improving financial performance and integration of buyouts.

The rating was upgraded to B1 from B2, both of which are highly speculative. Moody's also said the outlook for the company is stable.

Moody's also said it expects the company to continue expanding margins and improve cash flow generation. It also boosted the first lien facilities rating to Ba3 from B1, or speculative from highly speculative and the second lien term loan to B3 from Caa1, or highly speculative from substantial risk.

During 2008, the Waltham, Mass.-based company narrowed its loss to $21.8 million, or 46 cents per share, from a loss of $244.8 million, or $4.75 per share, in 2007. Revenue rose to $1.65 billion from $817.6 million. The company's products include tests for influenza, strep throat, malaria and other infectious diseases. It also sells diagnostic systems.

Shares of Inverness fell 6 cents to $26.02 in afternoon trading.