S&P rates Alere notes CCC+

Standard & Poor’s said it assigned a CCC+ rating to Alere Inc.’s proposed offering of $425 million of senior subordinated notes due in eight years.

The recovery rating on the notes is 6, reflecting 0 to 10% expected default recovery.

The proceeds will be used to redeem existing senior subordinated notes, the agency said.

Alere has had operating weaknesses due to sales declines stemming from its customer mix and lackluster performance from prior acquisitions, S&P said.

Expense reductions have offset some of these issues, but highlighted the company’s vulnerability in the competitive life-science industry, the agency said.

The corporate credit rating on Alere is B and the outlook is stable.

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