Danaher (NYSE:DHR) Credit Rating Under Review by S&P Ratings Service

Danaher's (NYSE:DHR) decision to acquire Beckman Coulter (NYSE:BEC) has had some immediate negative ramifications, as Standard & Poor's Ratings Services announced they've placed the company's rating on CreditWatch.

Standard & Poor's credit analyst Gregoire Buet said, "We expect that this acquisition will increase Danaher's financial leverage to levels that are somewhat higher than what Standard & Poor's considers commensurate with the 'A+' rating."

The negative CreditWatch could end with the company being downgraded by one notch, said S&P.

"We could also affirm the rating after our review of the transaction and of management's long-term strategic and financial objectives. In reviewing Danaher's credit rating, Standard & Poor's will consider the potential integration risk related to the Beckman Coulter acquisition, Danaher's future growth objectives and portfolio balance, as well as its anticipated use of debt for financing future acquisitions," added the ratings agency.

Danaher currently has a "A+" corporate rating on them from S&P. The "A+" rated senior unsecured debt of the company was also placed on CreditWatch negative.

S&P said they're affirming the short-term and commercial paper ratings on the company of "A-1."

Beckman Coulter closed at $82.65, gaining $7.48, or 9.95 percent. Danaher closed at $49.03, up $1.05, or 2.19 percent.