S&P: Angiotech on watch

Standard & Poor's said it placed its ratings, including the B- long-term corporate credit rating, on Angiotech Pharmaceuticals Inc. on CreditWatch with negative implications.

The agency said that the CreditWatch listing follows Angiotech's announcement that it expects to generate EBITDA of about $50 million for the full year ending Dec. 31, a significant decline from the $90 million previously projected.

S&P noted that this implies a pro forma debt to EBITDA of about 11.5x for 2007 compared with 6.4x under the previous projections, adding that management's revision was precipitated by delays in the realization of revenues from new medical product lines and the decision to continue investing in various products.

Angiotech's liquidity is adequate, but could become constrained if the underlying business doesn't improve, 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.