Moody's Upgrades American Medical Systems Holdings

NEW YORK (AP) — Moody's Investors Service upgraded ratings on medical device maker American Medical Systems Holdings Inc. Wednesday, citing improved performance, debt reduction, and expected reduction in financial leverage.

Moody's raised the corporate ratings and probability of default ratings for the Minnetonka, Minn.-based company to "Ba3," or speculative, by one notch from "B1."

Moody's said the ratings affect about $580 million in debt.

Also, Moody's upgraded the first lien senior secured revolver and term loan to "Ba1," or noninvestment grade, one notch from "Ba2." The ratings agency also upgraded the company's 3.25 percent convertible senior subordinated notes to "B1" from "B3."

The outlook for the ratings is stable, Moody's said.

"The ratings benefit from strength in demand across most implantable products despite ongoing reductions on hospital spending," Moody's said.

American Medical Systems Holdings makes a range of products aimed at treating erectile dysfunction and male incontinence.

Shares of American Medical Systems Holdings gained 6 cents to $16.22 in afternoon trading.