S&P: Generic Drug loans B+

Standard & Poor's said it assigned a B+ rating to Generic Drug Holdings Inc.'s proposed $35 million revolving credit facility maturing in 2017 and $300 million senior secured term loan B maturing in 2019.

The recovery rating on these credit facilities is 2, indicating 70% to 90% expected recovery in a default.

The agency also affirmed the B corporate credit rating on parent company Harvard Drug Group LLC. The outlook is stable.

The acquisition is a complementary fit to Harvard Drug's existing proprietary-label generic drug business and will not substantially alter a view of the company's highly leveraged financial risk profile, S&P said.

The ratings reflect the company's weak business risk and highly leveraged financial risk profiles, the agency said.

The business risk profile incorporates Harvard Drug's relative small scale and niche position, while the financial risk profile predominantly reflects its substantial adjusted debt, S&P said.

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