S&P rates APP Pharmaceuticals loans BB+

Standard & Poor's said it assigned the BB corporate credit rating to APP Pharmaceuticals Inc.

S&P assigned BB+ ratings to APP's $1.15 billion proposed financing, comprising a $500 million term loan A and $500 million term loan B, both due 2013, and a $150 million revolving credit facility due 2012.

The outlook is stable.

The ratings reflect the company's high debt leverage and niche position in the generic drug industry, the agency said.

These factors are offset partially by the company's solid industry position, well-stocked product pipeline and expected steady de-leveraging over the intermediate term, S&P said.

With an initial debt-to-EBITDA ratio of about 4 times, the agency said APP is considered aggressively but that its solid free cash flows should allow leverage to fall to about 3 times to 3.5 times over the next few years.

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