Moody's could cut Valeant

Moody's Investors Service said it placed the ratings of Valeant Pharmaceuticals International, Inc., including the Ba3 corporate family rating under review for downgrade.

Moody's said this action follows the announcement that Valeant will acquire Medicis Pharmaceutical Corp. for $44 per share or roughly $2.6 billion in cash. Funding sources will include new debt.

"The Medicis acquisition may push Valeant's leverage beyond Moody's tolerance level for the Ba3 rating, despite solid strategic rationale," Moody's senior vice president Michael Levesque said in a news release.

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