S&P assigns King loan BBB-, convertibles BB

Standard & Poor's said it assigned its BBB- rating to King Pharmaceuticals Inc.'s proposed $1 billion senior secured credit facility, with a recovery rating of 1, indicating its expectation for a very high recovery for secured lenders in the event of a default.

In addition, S&P said it assigned its BB rating to the company's existing $400 million convertible senior notes, with a recovery rating of 3, indicating its expectation for a meaningful recovery in the event of a default.

The agency said that the current ratings and outlook on King Pharmaceuticals reflect the ongoing competitive challenges facing a number of the company's core products, a lack of visibility with regards to new product pipeline contributions, and the potential need for significant, debt-financed product acquisitions.

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