S&P rates Axcan B+

Standard & Poor's said it assigned a B+ long-term corporate credit rating to Axcan Intermediate Holdings Inc. and withdrew the B+ corporate credit rating on Axcan Pharma Inc.

The outlook is stable.

S&P said the rating stems from a better understanding of the company's corporate structure after giving effect to the Feb. 25 acquisition of Axcan Pharma Inc. by Axcan.

Ratings reflect the company's limited size and scale, high initial debt leverage and susceptibility to generic competition, the agency said.

The company's niche position in gastroenterology, relatively diverse product portfolio and high margins partially offset these concerns, S&P noted.

Axcan's adjusted debt-to-EBITDA ratio is about 4x for the 12 months ended June 30.

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