S&P upgrades Elan

Standard & Poor's said it raised the corporate credit rating on Elan Corp. plc to B+ from B, along with its existing senior unsecured notes to BB- from B and unsecured recovery rating to 2 from 3.

The ratings also were removed from CreditWatch, where they were placed in May.

The upgrade reflects an expectation that with the cash proceeds from the sale of EDT and cash on-hand, the company will significantly reduce its debt, S&P said.

The speculative-grade rating on Elan primarily reflects the company's critical dependence on sales of its multiple sclerosis treatment, Tysabri, and a thin near-term pipeline, the agency said.

The critical dependence on Tysabri is key to the assessment of Elan's business risk profile as weak, S&P said.

As a result of its product concentration, Elan's financial performance is even more sensitive to fluctuations in demand for Tysabri, the agency said.

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