S&P rates Assertio convertibles B-

S&P said it assigned its B long-term issuer credit rating to Assertio Therapeutics Inc., formerly Depomed Inc.

The outlook is negative.

At the same time, the agency assigned a B- issue-level credit rating to the 2.5% convertible notes due in 2021. The recovery rating is 5, reflecting an expectation for modest recovery (10%-30%; rounded estimate: 25%) in the event of payment default.

“Our ratings reflect our expectation that adjusted leverage will remain above 5x because of slightly lower expectations for Gralise sales and the company's need to acquire new pharmaceutical assets to replace the eventual maturation of its limited drug portfolio,” S&P said in a news release.

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