S&P cuts Endo, rates notes B+

Standard & Poor's said it lowered its corporate credit rating on Endo International plc to B+ from BB-.

The ratings were removed from CreditWatch, where they were placed with negative implications on Sept. 17.

The outlook is stable.

The agency also lowered its rating on subsidiary Endo Luxembourg Finance Co. I Sarl's senior secured debt to BB from BB+. The 1 recovery rating on the secured debt is unchanged, indicating an expectation for very high (90% to 100%) recovery of principal in the event of payment default.

At the same time, S&P revised its recovery rating on senior unsecured debt co-issued by Endo Finance LLC and Endo Finco Inc., subsidiaries of Endo, to 4 from 5, and affirmed the B+ senior unsecured debt rating.

The agency assigned a B+ senior unsecured debt rating and a 4 recovery to Endo Ltd., Endo Finance LLC, and Endo Finco Inc.'s announced offering of $1 billion of senior unsecured notes.

S&P said the ratings reflect its assessment of a "fair" business risk profile, highlighted by a sizable and diverse high-margin pharmaceutical portfolio offset by increased generic competition to lead product Lidoderm, and its assessment of a "highly leveraged" financial risk profile, given expectations that leverage will remain over 5 times over the next two years and that funds from operations to adjusted debt will be below 12%.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.