Moody's gives Akorn CFR, loan B1

Moody's Investors Service said it assigned a B1 corporate family rating and a B1-PD probability of default rating to Akorn, Inc.

The agency also assigned a B1 rating to the $600 million senior secured term loan, the proceeds of which will be used to fund the acquisition of Hi-Tech Pharmacal Co. Inc.

Furthermore, Moody's assigned a SGL-2 speculative grade liquidity rating, reflecting the expectation for good liquidity.

The outlook is stable.

The B1 rating is constrained by Akorn's small size, even after the Hi-Tech acquisition, and its niche position in the highly competitive generic drug industry where it competes against significantly larger companies, Moody's said.

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