S&P: Valeant view positive

Standard & Poor's said it assigned B+ issue and 3 recovery ratings to Valeant Pharmaceuticals International's $300 million senior unsecured notes maturing 2016.

The agency also lowered the company's subordinated 3% and 4% convertible notes to B- from B+.

Valeant's outlook was revised to positive. The corporate credit rating is B+.

"The rating action on the company's subordinated 3% and 4% convertible notes to B- from B+ reflects their subordination in the capital structure to Valeant's new $350 million senior unsecured notes," S&P analyst Brian Jones said in a statement.

The outlook change reflects improved cash flow generation and operating performance resulting from recent restructuring initiatives, according to the agency.

Ratings reflect product and pipeline setbacks that have required the company to make substantial management and operational changes over the past two years, the agency said.

The need to replace lost revenue streams through acquisitions and a weak internal research and development program continue to outweigh Valeant's diverse portfolio and adequate liquidity, S&P noted.

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