Moody's rates Allergan notes A3

Moody's Investors Service said it assigned a rating of A3 to the new senior unsecured note issuance of Allergan, Inc.

The agency also affirmed Allergan's A3 long-term and Prime-2 short-term ratings.

The outlook is stable.

Proceeds are expected to be used for general corporate purposes, including working capital, capital expenditures, debt repayment, share repurchases and other business initiatives.

Moody's said the affirmation reflects continuation of good financial performance including high-single digit revenue growth through the first 6 months of 2010, and growth in free cash flow.

Despite rising competitive pressures for Botox and challenging economic conditions, Moody's said it believes Allergan will continue to sustain positive operating performance.

Allergan's A3 rating reflect strong credit metrics, a favorable mix of patent exposures and pipeline quality, offset by modest scale and diversity metrics in Moody's Baa and Ba ranges, the agency said.

The A3 rating is further supported by the company's long history of favorable operating performance and disciplined business development, Moody's said.

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