S&P affirms King, rates loan BBB-

Standard & Poor's said it affirmed its BB corporate credit rating on King Pharmaceuticals Inc. and assigned an issue-level rating of BBB- and a recovery rating of 1 to the company's proposed $500 million revolver.

The BB issue-level rating and 3 recovery rating on the company's $400 million convertible notes due in 2026 remain unchanged, S&P added.

At the same time, the agency said it is revising its outlook on the company to stable from negative.

"The speculative-grade ratings on King Pharmaceuticals Inc. reflect the ongoing competitive challenges facing a number of the company's core products, delayed new pipeline contributions, and the potential need for significant, debt-financed product acquisitions," said S&P credit analyst Michael Berrian.

However, King still has a relatively diverse product portfolio and remains conservatively financed, the agency added.

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