S&P: Watson view to negative

Standard & Poor's said it affirmed the BBB corporate credit and senior unsecured ratings on Watson Pharmaceuticals Inc.

The outlook was revised to negative from stable.

The acquisition of rapidly growing Actavis hf. expands Watson's revenues by about 50% and its key generic prescription pharmaceuticals business by more than 70%, S&P said.

Importantly, the acquisition will more than double its international operations, adding a strong presence in fast-growing central and western European regions, the agency said.

The ratings reflect an expectation of a rapid expansion of EBITDA from the acquired operations, S&P said.

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