S&P raises ResMed ratings
Monday, 01 September, 2003
Standard & Poor's ratings services has raised its corporate credit rating on ResMed (ASX:RMD) to 'BB-' from 'B+', and raised its senior subordinated debt rating on the company to 'B' from 'B-'.
The upgrade reflects ResMed's extended favourable operating performance and Standard & Poor's "increased confidence in the company's ability to build its market presence", S&P said in a statement.
"The speculative-grade ratings on ResMed reflect the niche medical equipment supplier's fast growth as it capitalises on the emerging market for sleep apnoea treatment," said Standard & Poor's credit analyst Jordan Grant. "This growth is offset by the company's still-limited size and resources."
The mostly untapped obstructive sleep apnoea and sleep-disordered breathing markets offer significant growth opportunities for ResMed, according to S&P. As the company has capitalised on this market potential, its revenue has grown by more than 30 per cent in each of the past two years.
The company faces competition in its principal geographic markets from larger competitors such as Respironics and Nellcor Puritan Bennett (a division of Tyco), both of which have greater financial capabilities than ResMed.
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