Moody's rates Elan notes B2

Moody's Investors Service said it assigned a rating of B2 (LDG 4, 66%) to the $200 million fixed-rate senior unsecured note issuance due 2016 of Elan Finance plc, a subsidiary of Elan Corp. plc.

The outlook remains positive.

The $200 million note offering represents a change in the deal structure from the initial offering in which the bond would be an add-on to Elan's existing $625 million senior unsecured notes due 2016, Moody's said.

The ratings reflect the company's limited scale, high product concentration risk, modest EBITDA and minimal free cash flow, offset by strong and rising sales of Tysabri, Moody's said.

The positive outlook reflects the potential for an upgrade over time if Elan continues its recent track record of improving operating performance, the agency said.

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