S&P upgrades Mylan debt, cuts loans

Standard & Poor's said it raised its corporate credit rating on Mylan Inc. to BBB- from BB+. The outlook is stable.

The agency also raised the company's unsecured debt rating to BBB- from BB.

However, the agency said it also lowered the issue-level ratings on Mylan's $1.25 billion senior term loan and $1.25 billion revolving credit facility to BBB- from BBB, given that the security interest in collateral will be released upon the upgrade of the company.

The agency said the ratings on Mylan reflect S&P's expectation of mid-single-digit EBITDA growth over the next few years, as well as the expectation that leverage measures will remain in line with the guidelines for an intermediate financial risk profile.

S&P said the upgrade incorporates room for potential share repurchases and acquisitions, given the ongoing consolidation of the generic drug industry.

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