S&P ups Watson Pharmaceuticals outlook to stable

Standard & Poor's said it revised its outlook on Watson Pharmaceuticals Inc. to stable from negative.

Ratings on the company, including the BBB- corporate credit, unsecured bank loan and senior unsecured debt ratings, were affirmed.

The outlook change is due to Watson's continued solid cash flow generation and maintenance of a modest financial risk profile, despite the challenges in the company's branded pharmaceutical franchise, the agency said.

Watson maintains a moderate financial profile and remains one of the world's largest generic drug companies, but S&P said it is concerned about the increasing competition to the company's key franchises, namely nephrology and women's health products, and the uncertain success of the company's strategic shift to refocus on its core generic drug business.

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