Moody's lowers Angiotech

Moody's Investors Service said it downgraded the corporate family rating of Angiotech Pharmaceuticals, Inc. to B3 from B2 and the probability-of-default rating to B2 from B1.

The agency downgraded the $325 senior unsecured notes to B2 (LGD3, 46%) from B1 (LGD3, 46%) and $250 senior subordinated notes to Caa1 (LGD6, 91%) from B3 (LGD6, 91%).

The outlook was revised to negative from stable.

The downgrade reflects the company's lowered revenue and EBITDA guidance for fiscal 2007, according to the agency.

"If Angiotech begins to burn through cash at an accelerated rate, the ratings would likely be downgraded," Diana Lee, a senior credit officer at Moody's, said in a written statement.

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