S&P reviews Reckitt Benckiser

S&P said it placed its A+/A-1 long- and short-term corporate credit ratings and its issue ratings on Reckitt Benckiser Group plc and its related entities on CreditWatch with negative implications.

The CreditWatch placement follows the Feb. 2 announcement that Reckitt Benckiser is in advanced negotiations to acquire pediatric nutrition manufacturer Mead Johnson Co. for about $16.7 billion in cash.

If the acquisition is completed under terms consistent with the agency’s current understanding of the financial risk tolerance of the two companies, S&P said it could lower the ratings on Reckitt Benckiser by two notches.

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