Moody’s reviews RPI Finance Trust

Moody's Investors Service said it placed the Baa2 senior secured term loan ratings of RPI Finance Trust under review for downgrade.

This action follows the announcement that RPI Finance Trust will purchase a Tysabri royalty stream from Perrigo Co. plc for $2.2 billion upfront and up to $650 million of potential milestone payments.

The outlook was revised to rating under review from negative.

Moody’s said the review was prompted by incremental debt to fund the Tysabri royalty acquisition, combined with the agency’s concerns that RPI Finance Trust's portfolio will shift toward products with less favorable risk characteristics compared to existing products.

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