S&P rates CuraGen converts CCC

Standard & Poor's said it assigned its CCC subordinated debt rating to drug development company CuraGen Corp.'s $100 million 4% convertible subordinated notes due in 2011 and affirmed its B- corporate credit and CCC subordinated debt ratings on the company.

The outlook is stable.

Proceeds from the offering may be used to repay existing debt as well as for working capital needs, general corporate purposes, and acquisitions.

S&P said the low speculative-grade ratings on CuraGen reflect the company's limited pipeline of drug candidates in clinical development, the high business risk characteristics of the drug development industry, and the company's cash requirements in the intermediate term. These negative factors are only partially offset by the company's significant on-hand cash and investments.

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