S&P assigns Angiotech Pharmaceuticals, loan BB-, notes B

Standard & Poor's said it assigned its BB- long-term corporate credit rating to Angiotech Pharmaceuticals Inc.

At the same time, S&P said it assigned its B rating to Angiotech's $250 million senior subordinated notes and its BB- rating to the company's $300 million term loan B and $75 million revolving credit facility.

The outlook is negative.

S&P noted the ratings on Angiotech reflect its concern over the company's product concentration, its high initial lease-adjusted debt following the recently announced acquisition of specialty medical device manufacturer American Medical Instruments, Inc. in February, lack of earnings visibility in the medium term and integration risk.

These factors are partially offset by the strong biotechnology capability of Angiotech, especially as it relates to the success of the licensed Taxus coronary drug eluting stent, strong cash flow generation capability and the upside potential of the AMI acquisition, the agency added.

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