S&P lifts IMS Health, rates notes BB+

S&P said it raised the ratings on IMS Health Inc.'s senior secured debt to BBB- from BB- and removed the ratings from CreditWatch with positive implications.

The agency also said it raised the ratings on the senior unsecured debt to BB+ from B+ and removed those ratings from the positive watch.

S&P also said it assigned a final BB+ rating to IMS Health's senior unsecured dollar-denominated notes due 2026 and senior unsecured euro-denominated notes due 2024.

The agency also said it is withdrawing the corporate credit rating on IMS Health as it is now a subsidiary of the parent entity Quintiles IMS Holdings Inc.

IMS Health recently completed its merger with Quintiles Transnational Holdings Inc. and the resulting parent company is called Quintiles IMS Holdings, S&P explained.

S&P also said it will withdraw the rating on the $500 million 6% senior unsecured notes due 2020 when they are redeemed.

The ratings reflect a belief that IMS Health plays a core role in Quintiles IMS because essentially all of the parent company's operating results flow through IMS Health, the agency said.

The unsecured debt is notched one level below the corporate credit rating and the rating on the secured debt because secured debt is a meaningful component of the capital structure, S&P said, and equates to more than 20% of adjusted assets.

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