S&P lowers Chattem outlook to negative

Standard & Poor's said it revised its outlook on Chattem Inc. to negative from stable.

Ratings on the company, including the BB- corporate credit rating, were affirmed, the agency said, noting that the revised outlook is based on significantly higher expected pro forma debt leverage for Chattem as a result of the planned acquisition of the U.S. rights to five brands currently owned by Johnson & Johnson and the consumer health care business of Pfizer Inc.

S&P said that the ratings on Chattem reflect the company's aggressive acquisition history and high pro forma debt leverage, noting that these factors are partially offset by Chattem's operating stability in recent years and the settlement of its Dexatrim litigation.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.