Moody's rates Perrigo loans Baa3

Moody's Investors Service said it assigned Baa3 ratings to the proposed senior secured revolver and term loans issued by new borrower Perrigo Investments LLC, and downgraded Perrigo Co. plc's senior unsecured notes to Ba2 from Ba1. Perrigo Co.'s SGL-3 Speculative Grade Liquidity rating is unchanged.

Additionally, the agency affirmed Perrigo Co.’s Ba1 corporate family rating, Ba1-PD probability of default rating.

“The Baa3 credit facility ratings reflect the company's announced plan to issue approximately $500 million of other incremental unsecured debt. The downgrade of the senior unsecured notes to Ba2 from Ba1 reflects the introduction of a significant amount of secured debt to the debt structure that weakens recovery prospects for unsecured debt in the event of a default,” Moody’s said in a press release.

Perrigo Investments borrowed the loans in connection with Perrigo Co.’s acquisition of Hera SAS and refinancing debt.

The outlook is negative.

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