S&P: Valeant Pharmaceuticals on negative watch

Standard & Poor's said it placed its ratings, including the BB corporate credit rating, on Valeant Pharmaceuticals International Inc. on CreditWatch with negative implications.

The placement follows the company's announcement of its acquisition of Bausch & Lomb in a partially debt funded transaction.

"The CreditWatch placement reflects the possibility of a downgrade and the substantial increase in Valeant's leverage following the Bausch & Lomb acquisition," S&P credit analyst Michael Berrian said in a news release.

"We had been expecting a pause in acquisition activity, following the Medicis transaction, to allow for a gradual reduction in debt."

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