S&P assigns Reliant Pharmaceuticals, loan B+

Standard & Poor's said it assigned its B+ corporate credit rating to Reliant Pharmaceuticals Inc.

The outlook is stable.

At the same time, the agency said it assigned its loan and recovery ratings to the company's senior secured financing, consisting of a $215 million term loan due 2012.

The term loan has a first-lien interest in all assets of the company except accounts receivable, in which it holds a second-lien interest, S&P said, adding that the term loan is rated B+ with a recovery rating of 3.

The corporate credit rating on Reliant reflects the company's limited product diversity, high sales concentration in Omacor, the need to compete against much larger players, and leveraged capital structure and limited free cash flows expected over the near term, the agency said.

These concerns are somewhat mitigated by the growing sales of Omacor, the agency added.

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