S&P lowers Endo to negative, rates notes B+

Standard & Poor’s said it affirmed the BB- corporate credit rating on Endo International plc.

The agency also said it revised the outlook to negative from stable.

S&P also said it affirmed the BB+ rating on Endo’s subsidiary, Endo Luxembourg Finance Co. I Sarl’s secured debt. The 1 recovery rating on the secured debt is unchanged, indicating 90% to 100% expected default rating.

The agency also said it assigned a B+ rating to $500 million of senior unsecured notes to be co-issued by Endo Finance LLC and Endo Finco Inc., also subsidiaries of Endo. A 5 recovery rating also was assigned to this debt.

S&P also said it raised the rating on their existing senior unsecured notes to B+ from B.

The agency also said it revised the recovery rating on this debt to 5 from 6, indicating 10% to 30% expected default recovery.

The recovery rating revision reflects an estimate of greater value available to unsecured creditors as a result of more secured debt amortization and the addition of businesses Endo is expected to acquire in 2014, only partly offset by the increased amount of senior unsecured debt, S&P said.

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