Fitch: Watson on watch

Fitch Ratings said it placed the ratings for Watson Pharmaceuticals Inc., including its BBB issuer default rating, on Rating Watch negative.

Watson announced plans to acquire Actavis Group, a privately-held company, for an upfront payment of €4.25 billion plus additional consideration, the agency said.

Fitch said it expects that debt funding of the acquisition will drive total debt-to-EBITDA to above a level consistent with the BBB issuer default rating.

The agency said it anticipates that Watson will finance almost 100% of the cost of the acquisition with debt.

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