Fitch places Allergan on negative watch

Fitch Ratings said it placed Allergan Inc.'s A+ senior unsecured debt and issuer default ratings and F1 commercial paper rating on Rating Watch negative.

The rating action follows Allergan's announcement of its intention to purchase Inamed Corp. for approximately $3.2 billion - $1.45 billion in cash and 17.9 million Allergan shares.

Fitch said revenue concentration in the current product portfolio, with reliance on sales of the Botox and Alphagan products, is addressed by the potential acquisition of Inamed, which will add collagen- and hyaluronic acid-based dermal fillers, breast implants and weight-loss systems.

However, debt financing necessary to complete the transaction is expected to increase leverage, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.