The ratings on Washington-based diversified industrial and medical equipment manufacturer Danaher Corp. reflect Standard&Poor's Ratings Services' expectation that the company's credit measures will continue to recover and return to levels that we consider adequate for the rating in 2012, following higher debt that resulted from the $6.8 billion acquisition of Beckman Coulter Inc. in 2011. We expect Danaher's consistent free operating cash flow (FOCF) and a minimal dividend payout will allow for some additional debt reduction this year and enable the company to resume its acquisition activities, while preserving credit measures. Our rating assumes the company will generate about $2.3 billion in FOCF in fiscal 2012 and $2.5 billion in 2013 (compared to about $2 billion in 2011).
