S&P rates Warner Chilcott loan BBB-, ups notes

Standard & Poor's said it assigned a BBB- rating and 1 recovery rating to Warner Chilcott plc's proposed $3.25 billion senior secured credit facility.

The agency also said it raised the rating on the company's existing $1.25 billion senior unsecured notes to BB from B+ and revised the recovery rating on the notes to 4 from 6.

The agency also said it affirmed the BB corporate credit rating on the company.

The outlook is stable.

The speculative-grade rating on Warner Chilcott reflects the threat of generic competition to the company's product portfolio in light of limited internal research and development capabilities, S&P said.

This will result in additional product or company acquisitions over the next one to two years, the agency said. As a result, S&P said it characterizes Warner Chilcott's financial risk profile as significant and its business risk profile as fair.

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