S&P rates Rottapharm notes BB-

Standard & Poor's said it assigned its BB- long-term corporate credit rating to Rottapharm SpA. The outlook is stable.

At the same time, the agency said it assigned a BB- issue rating to the €400 million senior unsecured notes due 2019 issued by Rottapharm Ltd. The agency said it also assigned a recovery rating of 3, indicating an expectation of meaningful recovery in the event of a payment default.

The agency said the ratings on Rottapharm reflect its view of the group's fair business risk profile, supported by a profitable and diversified portfolio of products. The ratings also reflect Rottapharm's aggressive financial risk profile, with S&P-adjusted funds from operations to debt of less than 20% and debt to EBITDA in the 3x-4x range, but resilient free cash flow generation.

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