Fitch rates Schering-Plough convertible

Fitch Ratings said it assigned Schering-Plough Corp.'s proposed mandatory convertible preferred stock issuance a BBB+ rating and affirmed the A- senior unsecured and bank loan ratings and the F-2 commercial paper rating.

The outlook is negative.

Proceeds from the preferred stock offering are expected to be used for general corporate purposes including commercial paper refinancing, operating expenses, capital expenditures, taxes, business development activities, licensing fees and milestone payments and litigation settlement payments and expenses.

Fitch said it recognizes Schering-Plough's excellent liquidity provided by a large cash balance, short-term investments and $1.5 billion of bank facilities, supporting a $3.5 billion commercial paper program.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.