S&P: No change to Watson

Standard & Poor's said its ratings on Watson Pharmaceuticals Inc. are unaffected following the acquisition of unrated Ascent Pharmahealth Ltd. for roughly $390 million in cash.

The acquisition provides Watson with an expanded product portfolio and an opportunity to expand its footprint in the South-East Asia market, the agency said.

According to S&P, Watson funded the transaction through borrowings of $375 million under its revolving credit facility and balance with cash in hand.

The agency said the additional debt increases pro forma leverage to only 1.6x, which is within the guideline measures for the intermediate financial risk profile.

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