S&P puts Hospira on watch

Standard & Poor's said it placed its BBB+ corporate credit and senior unsecured debt ratings on Hospira Inc. on CreditWatch with negative implications.

The agency said that the actions are in response to Hospira's announcement that it plans to acquire Mayne Pharma Ltd. for roughly $2 billion in cash.

The agency added that it is not currently contemplating more than a one-notch ratings downgrade for Hospira, should a downgrade occur.

Hospira's proposed transaction would significantly increase the medical products manufacturer's injectable drugs business, currently 33% of sales, which is one of its faster growing, more profitable business lines, S&P noted.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.