Moody’s revises Mylan view to stable

Moody's Investors Service said it affirmed the Baa3 senior unsecured rating of Mylan Inc.

This follows the announcement that only 40% of Perrigo Co. plc shareholders had tendered their shares, below the threshold for the acceptance condition to be satisfied. Therefore, Mylan will not move forward with the acquisition of Perrigo.

Moody's revised the outlook to stable from negative.

"The lapse of the tender offer alleviates near-term concerns relating to integration risks and significantly increased financial leverage," Moody's senior vice president Jessica Gladstone said in a news release.

"Mylan is likely to pursue other acquisitions, or share repurchases, that would be credit negative. However, the company's investment grade rating has ample cushion given Mylan's low financial leverage and good near-term growth outlook following favorable recent developments in its EpiPen franchise."

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