Moody's: Elan view to developing

Moody's Investors Service said it revised the outlook on Elan Corp. plc to developing from stable.

At the same time, Moody's affirmed Elan's existing ratings, including the Ba3 corporate family rating, the Ba2-PD probability of default rating and the SGL-1 speculative grade liquidity rating.

Moody's said the developing outlook is based on Elan's announcement that the company is for sale.

The acquisition of Elan by a company with a stronger credit profile could result in a rating upgrade, depending on the treatment of Elan's debt, the agency said. An acquisition by a smaller company involving high leverage could result in a downgrade.

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