Fitch: Schering-Plough unaffected

Fitch Ratings said it does not anticipate a change to Schering-Plough Corp.'s ratings following the settlement reached with the U.S. Department of Justice and the U.S. Attorney's Office for the District of Massachusetts regarding the investigation into the company's sales, marketing and clinical trial practices.

The agreement, which resolves the investigation, includes a total settlement amount of $435 million including $180 million of criminal fines and $255 million for civil issues. The settlement amount is still subject to court approval. Additionally, an addendum will be added to Schering-Plough's existing corporate integrity agreement with the Office of Inspector General.

Fitch said that the aggregate payment was both within the company's litigation reserve and the agency's expectations and that the agency looks favorably on continued actions of current executive management to reduce litigation exposure inherited from the previous management team.

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