S&P: Rottapharm remains on negative watch

Standard & Poor’s said it kept the BB- long-term corporate credit rating on Rottapharm on CreditWatch with negative implications, where it was placed in August.

The BB- rating on the company’s €400 million senior unsecured notes due 2019, which are issued by subsidiary Rottapharm Ltd., also remains on CreditWatch with negative implications.

The original CreditWatch placement followed the announced takeover bid of Rottapharm by Meda AB, S&P said.

Although Meda announced the completion of the transaction Oct. 10, S&P said it is still lack visibility on the combined group’s credit profile.

Although the combined group’s business risk profile will be more robust than that of Rottapharm on a stand-alone basis due to enhanced scale and diversification, the agency said it believes the application of the group rating methodology will have a negative impact on the ratings because the financial risk profile of the group will likely turn highly leveraged.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.