S&P puts Mylan on watch

Standard & Poor's said it placed Mylan Inc.’s BBB- corporate credit rating and all other ratings on CreditWatch with negative implications following news that it is in discussions to acquire Perrigo in a $29 billion deal funded with a mix of cash, equity and debt.

A potential acquisition of Perrigo would further strengthen Mylan's business, adding a leading over-the-counter business and a high-margin franchise in Tysabri, S&P said.

Both Perrigo and Mylan are viewed as having satisfactory business risk profiles, the agency said.

But, the acquisition also could significantly increase debt leverage, S&P said.

The agency said it will resolve the CreditWatch placement on Mylan when there is more clarity as to the financing terms of the deal and the de-levering plans post-acquisition.

© 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.