S&P upgrades Axcan

Standard & Poor's said it raised Axcan Intermediate Holdings Inc.'s long-term corporate credit rating to BB- from B+.

The outlook is stable.

The agency raised Axcan's senior secured debt to BB+ from BB- and revised the recovery rating to 1 from 2, and its senior unsecured debt to B from B- with the recovery rating unchanged at 6.

"The upgrade on the company predominantly reflects our view of Axcan's improved financial risk profile following the better-than-expected operating performance in recent quarters," S&P analyst Maude Tremblay said in a statement.

"We revised the recovery rating on Axcan's senior secured debts based on our expectation of a higher emergence multiple, in light of recent market transactions, a slightly longer period to default given the improved prospects of the company and lower senior debt outstanding at default, given the amortization schedule of the senior secured term loan A," Tremblay added.

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