Moody's rates Endo notes Ba2

Moody's Investors Service said it assigned corporate family and probability of default ratings of Ba2 to Endo Pharmaceuticals Holdings Inc., along with a Ba2 (LGD 4, 58%) rating to Endo's new $400 million senior unsecured note offering due 2020 and a SGL-1 speculative grade liquidity rating.

The outlook is stable.

The proceeds are expected to be used to partially fund the pending acquisition of Qualitest Pharmaceuticals announced in September, Moody's said.

Moody's said it does not rate Endo's amended $500 million senior secured revolving credit facility due 2015, $400 million senior secured term loan A due 2015 or $379.5 million 1¾% senior subordinated convertible notes due 2015.

The ratings reflect Endo's modest size and scale relative to larger pharmaceutical peers, partially offset by the company's solid market positioning as a niche player in the pain market and its conservative financial profile, Moody's said.

The ratings also consider Endo's solid cash flow generation, good liquidity and potential near-term pipeline opportunities, the agency said.

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