Moody's drops Valeant

Moody's Investors Service said it downgraded the corporate family rating of Valeant Pharmaceuticals International to B2 from B1 and kept Valeant's ratings under review for possible further downgrade.

Moody's said it initially placed the ratings under review for possible downgrade on Oct. 23.

The agency noted that this rating action follows the company's recent announcement that the trustee for the holders of its 3% convertible notes due 2010 has declared a notice of default related to Valeant's late filing of its Form 10-Q for the quarter ended September 30.

According to the indentures governing $300 million of Valeant's senior notes, $240 million of convertible notes due 2010 and $240 million of convertible notes due 2013, failure to file timely SEC reports constitutes a covenant violation, Moody's said.

© 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.