Moody’s lowers Generic Drug, loans

Moody's Investors Service said it downgraded Generic Drug Holdings, Inc.'s corporate family rating to B3 from B2.

At the same time, the agency lowered Generic Drug's first-lien term loans and secured revolver ratings to B2 from B1.

The outlook is stable.

"The rating downgrade reflects Moody's view that Generic Drug will likely sustain leverage at levels that are consistent with a B3 rating," Moody's senior credit officer Diana Lee said in a news release.

The company faces some operating challenges, which will continue to impede deleveraging following its relatively large dividend recap in 2013. Debt/EBITDA, which is currently high at around 6 times, will remain above 5 times over the next 12 to 18 months, the agency said.

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