June 5, 2012 / 5:42 PM / 5 years ago

TEXT-S&P rates Valeant Pharmaceuticals

 (The following statement was released by the rating agency)	
 June 5 - Standard & Poor's Ratings Services said today that it assigned its
'BBB-' issue-level rating and '1' recovery rating to Montreal-based
pharmaceutical company Valeant Pharmaceuticals International Inc.'s    
  incremental $500 million term loan B due Feb. 13, 2019. 	
All other ratings, including the 'BB' corporate credit rating, remain 	
unchanged. The company intends to use the proceeds from this issuance, which 	
will increase pro forma leverage to about 3.9x-in line with our expectations, 	
for general corporate purposes.	
	
The ratings on Valeant reflect Standard & Poor's view that the company will 	
maintain a "significant" financial risk profile. Despite our expectation of 	
acquisition activity, we believe the company will only commit to acquisitions 	
that do not result in leverage consistently above 4x, in line with their 	
stated financial policy. Our consideration of Valeant's business risk profile 	
as "fair" reflects the benefits of a broader product portfolio, geographic 	
diversification, and expanded pipeline it has achieved through multiple 	
acquisitions over the past two years. This is offset by the potential for 	
integration issues, and the potential challenges of managing a very large 	
portfolio of small products, given the high level of acquisition activity. 	
(For the complete corporate credit rating rationale, see the summary analysis 	
on Valeant, published March 9, 2012, on RatingsDirect.)	
	
RELATED CRITERIA AND RESEARCH	
  -- Methodology And Assumptions: Liquidity Descriptors For Global 	
Corporate Issuers, Sept. 28, 2011	
  -- 2008 Corporate Criteria, April 15, 2008	
	
RATINGS LIST	
	
Valeant Pharmaceuticals International Inc.	
 Corporate Credit Rating                 BB/Stable/--	
	
New Ratings	
	
Valeant Pharmaceuticals International Inc.	
 Incremntl $500 mil term ln B due 2019   BBB-	
Recovery Rating                       1	
	
 (Caryn Trokie, New York Ratings Unit)	
 

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below