S&P lowers Pharmaceutical Product, rates notes CCC+

Standard & Poor's said it lowered the corporate credit rating on Pharmaceutical Product Development LLC to B from B+.

The agency also said it lowered the rating on the company's senior secured credit facility to B+. The recovery rating on this debt is unchanged at 2, reflecting 70% to 90% expected recovery in a default.

The agency also said it lowered the rating on its senior notes to B-. The recovery rating on this debt is unchanged at 5, reflecting 10% to 30% expected recovery in a default.

S&P also said it assigned a CCC+ rating to the company's proposed $500 million holding company PIK option notes with a recovery rating of 6, indicating 0 to 10% expected recovery.

The outlook is stable.

The downgrades follow news that the company will issue additional debt to fund a sponsor dividend less than one year following the 2011 leveraged buyout, the agency said.

The ratings reflect the company's highly leveraged financial risk profile and fair business risk profile, S&P said.

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