S&P ups Royalty Pharma from junk

Standard & Poor's said it raised the corporate credit rating on Royalty Pharma to BBB- from BB+ and BBB- senior secured rating on Royalty Pharma Finance Trust's $2.1 billion term loan due 2013.

The outlook is stable.

The upgrade reflects S&P's increased comfort, the agency said, with Royalty Pharma's drug royalty acquisitions, the strong performance a portfolio of royalty streams and management's commitment to maintain leverage at between 4 times and 4.5 times.

S&P said investment-grade ratings reflect the company's diverse portfolio of royalty-generating pharmaceutical assets, the solid sales growth prospects of those assets and management's solid track record in conducting acquisitions.

These strengths are offset partially by Royalty Pharma's aggressive acquisition pace and financial policies, the agency said.

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