S&P rates Aptalis facility B+

Standard & Poor's said it affirmed its B+ long-term corporate credit rating on Aptalis Pharma Inc.

The outlook is stable.

The agency also affirmed its B+ issue-level rating on Aptalis' senior secured debt and revised its recovery rating on the debt to 4 from 3.

At the same time, S&P assigned its B+ issue-level rating to the company's proposed $1.55 billion senior secured debt facility, consisting of a $150 million revolver due 2018 and a $1.4 billion term loan B due 2020. The recovery rating is 4, indicating expectations of average (30%-50%) recovery in the event of a default.

S&P said the ratings on Aptalis reflect the company's "weak" business risk and "aggressive" financial risk profiles (as its criteria define the terms).

"The business risk profile reflects Aptalis' susceptibility to competition and regulatory changes in its narrow focus on gastroenterology and cystic fibrosis treatments, as well as the potential of generic competition for two of its significant franchises over the next several years," S&P credit analyst Arthur Wong said in a news release. "These risks are somewhat offset by the company's relatively diverse product portfolio."

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