NEW YORK (TheStreet) -- Shares of Alere (ALR) are down by 0.24% to $53.98 on heavy trading volume on Tuesday afternoon as Standard & Poor's issued a positive outlook on the company and put it on positive creditwatch.
This comes after Abbott Laboratories (ABT) yesterday said it would buy the Waltham, MA-based company for $5.8 billion.
Once the acquisition closes, the credit rating agency could upgrade Alere from its current B rating, which is solidly in junk bond status, Barron's reports.
Healthcare company Abbott has an A-plus rating, which is an upper level investment grade rating.
S&P said there is potential for meaningfully higher rates for Alere after the deal is complete.
"We expect Abbott to fund the transaction with debt and to assume or refinance Alere's debt upon completion of the deal," credit analyst Maryna Kandrukhin told Barron's.
Alere is a provider of health information through diagnostic tests.
About 9.23 million of the company's shares were traded by this afternoon, well above its average volume of 2.07 million shares per day.
Separately, TheStreet Ratings Team has a "hold" rating with a score of C on the stock.
The primary factors that have impacted the rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.
The company's strengths can be seen in multiple areas, such as its compelling growth in net income, good cash flow from operations and expanding profit margins.
As a counter to these strengths, the team also finds weaknesses including a generally disappointing performance in the stock itself and generally higher debt management risk.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: ALRALR data by YCharts