S&P upgrades Sepracor

Standard & Poor's said it raised Sepracor Inc.'s corporate credit rating to B+ from B and subordinated debt rating to B- from CCC+. The outlook is positive.

The upgrade reflects Sepracor's improving operating performance due to growing sales of its Lunesta and Xopenex pharmaceutical franchises. S&P said it believes that the improving performance related to increasing cash flows will significantly improve the company's credit protection measures over the intermediate term and that the substantial on-hand cash provides more than adequate liquidity.

However, Sepracor still has a heavy debt burden and must continue to successfully compete against much larger current and future rivals, the agency noted.

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