Hillenbrand, which focuses on hospital beds and other health care equipment, is receiving the downgrade because the company will be less diversified, S&P said. It will be renamed Hill-Rom Holdings Inc. at the separation.
Batesville Casket will take the corporate name of Hillenbrand Inc.
Both companies will trade on the New York Stock Exchange. Hill-Rom Holdings will have the ticker HRC, and Hillenbrand will be HI.
The companies will remain headquartered in Batesville, which is between Indianapolis and Cincinnati.