S&P lowers Endo to negative

S&P said it affirmed the B+ corporate credit rating on Endo International plc and revised its outlook to negative from stable.

The negative outlook reflects disruption to the company's 2016 free cash-flow generation and slower de-leveraging than expected as a result of the sudden weakening of its generic franchise, increased litigation costs and other negative developments, S&P said.

Now, the agency said it expects adjusted leverage to remain about 8x in 2016 with no material reduction until after 2017.

S&P also said it sees increased risk to the base-case projections as a result of increased competitive pressures and the possibility of additional legal settlements.

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