MUMBAI (Thomson Financial) - Standard & Poor's Ratings Services said its
'BBB-' corporate credit rating on Barr Pharmaceuticals Inc. remains on negative
watch following the announcement that Teva Pharmaceutical Industries Ltd. is
planning to acquire the generic drug maker for approximately $7.4 billion.
The ratings for Barr originally were placed on the watch list in May
following disappointing earnings and sharply lowered expectations for 2008. Barr
currently has roughly $2.1 billion of unrated debt that will be either assumed
or refinanced by Teva.
"Upon the completion of the acquisition of Barr by higher rated Teva,
expected to close before the end of 2008, the corporate credit rating on Barr
will be withdrawn," S&P said. However, should the transaction not be completed,
the agency will review Barr's prospects, with the potential for a ratings
downgrade.
TFN.newsdesk@thomson.com
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