S&P rates Mylan notes BBB-

Standard & Poor's said it affirmed its BBB- corporate credit rating on Mylan Inc.

The outlook is stable.

At the same time, S&P assigned its BBB- issue rating to the company's senior unsecured notes.

Leverage, pro forma for the pending $1.6 billion acquisition of Agila Specialties Private Ltd. announced in February, is roughly 3.5 times, which is high for an intermediate financial risk profile.

However, S&P said it believes that the company will use free cash flow for debt reduction and that, coupled with EBITDA growth, will result in leverage declining to less than 3 times within two years.

"We continue to view Mylan's business risk as satisfactory, reflecting its well-established position in the generic drug industry and our expectation that it will continue participating in ongoing industry consolidation in a measured manner," S&P credit analyst Arthur Wong said in a news release.

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