Moody’s Upgrades Bio-Rad to Baa2, Reflecting Recent Improvement in the Company’s Operating Performance
HERCULES, Calif.–Bio-Rad Laboratories, Inc. (NYSE: BIO and BIOb), a global leader of life science research and clinical diagnostic products, announced that Moody’s Investors Service (“Moody’s”) upgraded the unsecured rating of Bio-Rad Laboratories, Inc. senior unsecured notes to Baa2 from Baa3. The outlook was changed to stable from positive. According to Moody’s, the upgrade reflects recent improvement in Bio-Rad’s operating performance including solid profit margin expansion as well as progress made in its multi-year ERP implementation. The upgrade also reflects the company’s consistently strong credit metrics.
“Bio-Rad is pleased to have reached this important milestone,” said Ilan Daskal, Bio-Rad Chief Financial Officer. “An improved investment-grade credit rating recognizes our commitment to the company’s financial stability and priorities, moving forward.”
In explaining its rationale for the upgraded credit rating, Moody’s noted that Bio-Rad’s Baa2 rating is supported by the company’s conservative capital structure and strong credit metrics. The stable outlook reflects Moody’s expectations that if the company were to make a large acquisition, it would apply free cash flow to debt repayment in order to restore credit metrics relatively quickly.
Bio-Rad Laboratories, Inc. (NYSE: BIO and BIOb) is a global leader in developing, manufacturing, and marketing a broad range of innovative products for the life science research and clinical diagnostic markets. With a focus on quality and customer service for over 65 years, our products advance the discovery process and improve healthcare. Our customers are university and research institutions, hospitals, public health and commercial laboratories, biotechnology, pharmaceutical, as well as applied laboratories that include food safety and environmental quality. Founded in 1952, Bio-Rad is based in Hercules, California, and has a global network of operations with more than 8,000 employees worldwide. Bio-Rad had revenues exceeding $2.2 billion in 2018. For more information, please visit www.bio-rad.com.
This release may be deemed to contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements we make regarding an improved investment-grade credit rating recognizing our commitment to the company’s financial stability and priorities moving forward. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "reflects", "believe," "expect," "anticipate," "may," "will," or similar expressions or the negative of those terms or expressions, although not all forward-looking statements contain these words. Such statements involve risks and uncertainties, which could cause actual results to vary materially from those expressed in or indicated by the forward-looking statements. For further information regarding our risks and uncertainties, please refer to the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operation" in Bio-Rad’s public reports filed with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. Bio-Rad cautions you not to place undue reliance on forward-looking statements, which reflect an analysis only and speak only as of the date hereof. We disclaim any obligation to update these forward-looking statements.
Bio-Rad Laboratories, Inc.
Tina Cuccia, Corporate Communications