S&P: CFR Pharmaceuticals on positive watch

Standard & Poor's said it placed the BB+ corporate credit and issue ratings on CFR Pharmaceuticals SA on CreditWatch with positive implications.

The CreditWatch placement follows news that Abbott Laboratories agreed to acquire about 73% of CFR's issued and outstanding shares, S&P said. Abbott has until Nov. 3, 2014 to make the offer for the rest of CFR's outstanding shares in order to have 100% control of the company, the agency said.

Assuming the acquisition is completed, the agency said it could raise the ratings on CFR depending on an assessment of the potential support from its new parent company and if the change-of-control acceleration clause in CFR's $300 million outstanding unsecured notes isn't triggered.

S&P said it does not expect substantial operating changes for CFR following its buyout, but it could benefit from potential synergies and Abbott's expertise in the health-care industry.

The agency said it also doesn't expect changes in the company's business or financial risk profiles.

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