Moody's revises ratings for nine U.S. pharma companies

Moody's Investors Service implemented its new probability-of-default and loss-given-default rating methodology for the U.S. pharmaceutical sector, which includes nine companies subject to the loss-given-default methodology.

Following is a list of the rating actions, with the rating immediately after the company name denoting the corporate family rating, while the percentages next to the loss-given-defaults represent the expected loss-given-default rates.

Barr Laboratories, Inc.: Ba1; probability-of-default rating, Ba1; $300 million revolving credit facility, Ba1, LGD4, 50%; $2 billion term loan, Ba1, LGD4, 50%; $500 million bank credit facility, Ba1, LGD4, 50%.

Biovail Corp.: Ba3; probability-of-default rating, Ba3, $400 million senior subordinated notes, downgraded to B2 from B1, LGD4, 67%.

King Pharmaceuticals, Inc.: Ba3; probability-of-default rating, Ba3; $400 million secured revolving credit facility downgraded to Ba2 from Baa3, LGD2, 12%.

Mylan Laboratories Inc.: Ba1; probability-of-default rating, Ba1; $350 million senior unsecured notes, Ba1, LGD4, 51%; $150 million senior unsecured notes, Ba1, LGD4, 51%; $700 million revolving credit facility, Ba1, LGD4, 51%.

Phibro Animal Health Corp.: B2; probability-of-default rating, B2; $160 senior unsecured notes, downgraded to B3 from B2, LGD3, 48%; $80 senior subordinated notes, Caa1, LGD5, 89%.

Quintiles Transnational Corp.: B1; probability-of-default rating, B1; $1 billion first-lien term loan, B1, LGD3, 44%; $225 million first-lien revolving credit facility, B1, LGD3, 44%; $220 million second-lien term loan, downgraded to B3 from B2, LGD5, 72%.

Valeant Pharmaceuticals International: B1; probability-of-default rating, Ba3; $300 million senior unsecured notes, downgraded to B1from Ba3, LGD3, 39%.

Warner Chilcott Co., Inc.: B2; probability-of-default rating, B2; $870 million senior secured term loan, downgraded to B2 from B1, LGD3, 36%; $239 million delayed-draw secured term loan, downgraded to B2 from B1, LGD3, 36%; $150 million senior secured revolving credit facility, downgraded to B2 from B1, LGD3, 36%. Warner Chilcott Holdings Company III, Ltd.: $162 million senior secured term loan, downgraded to B2 from B1, LGD3, 36%. Warner Chilcott Corp.: $351 million senior secured term loan downgraded to B2 from B1, LGD3, 36%; $600 million senior subordinated notes, Caa1, LGD5, 89%.

Watson Pharmaceuticals, Inc.: Ba1, probability-of-default rating, Ba1; $300 million revolving credit facility, downgraded to Ba1 from Baa2, LGD2, 13%; $500 million revolving credit facility, downgraded to Ba1from Baa3, LGD3, 36%; $650 million term loan, downgraded to Ba1 from Baa3, LGD3, 36%; $575 million convertible debentures (CODES), Ba2, LGD5, 87%.

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