Moody's confirms King Pharmaceuticals

Moody's Investors Service said it confirmed the ratings of King Pharmaceuticals, Inc. (Ba3 senior implied), concluding a rating review for possible downgrade initiated on December 1, 2004. Following this rating action, the outlook is negative.

Moody's confirmed King's Ba2 senior secured revolving credit facility due 2007, Ba3 rated $345 million senior unsecured guaranteed convertible debentures due 2021 and B1 senior unsecured issuer rating.

Moody's said confirmation of King's Ba3 senior implied rating reflects good prospects for free cash flow generation because of favorable demand for its core pharmaceutical products, King's low debt levels and high cash balances and management's strategic plans to maximize the potential of its inline products and leverage its 1,000-person sales force by pursuing pharmaceutical acquisitions and collaborations.

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