Fitch puts Allergan on watch

Fitch Ratings said it placed the ratings for Allergan Inc., including the A+ issuer default rating, on Rating Watch negative.

The negative watch stems from Valeant Pharmaceuticals International Inc.'s unsolicited offer to acquire Allergan for about $45.6 billion.

Additional ratings on watch include the company's senior unsecured debt rating of A+, bank loan rating of A+, short-term issuer default rating of F1 and commercial-paper rating of F1, Fitch said.

Valeant's proposed offer comprises a cash component of $48.30 and an equity portion of 0.83 shares of Valeant common stock per each Allergan share, the agency said.

Valeant has committed financing for up to $15.5 billion to fund the cash payment upon completion of the transaction. Valeant management anticipates net debt of about $28 billion upon closure of the acquisition, the agency said.

If the offer is accepted by Allergan's board and shareholders, Fitch said it expects its ratings would fall to less than investment grade.

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