S&P rates Elan notes BB-

Standard & Poor's said it affirmed its B+ corporate credit rating on Elan Corp plc and removed the rating from CreditWatch, where it was listed with positive implications on Aug. 13.

The BB- ratings on unsecured issues of subsidiaries Elan Finance Corp. and Elan Finance plc were unaffected by the CreditWatch action.

The agency said it assigned a BB- issue-level and a 2 recovery rating to Elan's proposed senior notes due 2019, proceeds of which will refinance $625 million of existing unsecured debt. The outlook is stable.

"The ratings on Elan Corp. plc reflect our belief that it will remain entirely dependent on its multiple sclerosis treatment, Tysabri, for the foreseeable future," said S&P credit analyst Michael Kaplan in a news release.

The agency said this belief is highlighted by the proposed spin-off of Elan's discovery unit in the wake of the recent failure of an Alzheimer's treatment candidate. Consequently, S&P said it revised its assessment of the company's business risk profile to vulnerable from weak.

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