Fitch Ratings has upgraded Bio-Rad Laboratories Inc.'s long-term issuer default ratings to BBB from BBB-.
The outlook on the ratings of the Hercules, Calif.-based company is stable, according to the rating agency.
The upgrade reflects Bio-Rad's improved EBITDA and free cash flow margins that have occurred due to the company's cost rationalization initiatives and improvement of internal controls. The company's leverage is strong for the current ratings and will allow headroom to pursue potentially expanded business development activity, Fitch said.
The ratings apply to $441 million of Bio-Rad's debt as of June 30, the rating agency noted.
Bio-Rad develops products for the life science research and clinical diagnostic markets.
