S&P: Elan unaffected by divestiture

Standard & Poor's said Friday that the ratings and outlook on Elan Corp. plc (B-/positive/--) are not affected by the company's announcement that it has completed the sale of its European sales and marketing business for $120 million.

S&P said the completion of the sale as expected marks the conclusion of Elan's divestiture plan, in which the company raised nearly $2 billion. Proceeds from the program, as well as from recent debt and equity issuances, have enabled the company to fund its high research and development expenditures, satisfy debt maturities, and maintain an approximately $1 billion cash cushion.

However, Elan still faces $840 million in debt maturities in the near term, and cash flows from operations are expected to remain negative during that time, the agency said.

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