Moody’s rates Actavis notes Baa3

Moody's Investors Service said it assigned a Baa3 rating to the new notes offering of Actavis Funding SCS (Luxembourg), an indirect subsidiary of Actavis plc and a parent company of Actavis, Inc.

There are no changes to the existing ratings of Actavis or its related subsidiaries.

The outlook is stable.

Proceeds will be used to help fund the cash portion of the previously announced acquisition of Allergan Inc. (A3, review for downgrade).

Moody’s said the Baa3 rating reflects Actavis' significant scale, diversity, and cash generation ability following the close of the acquisition of Allergan, Inc., expected to occur within the next several weeks.

The combined company will generate over $22 billion of revenue, will have very good diversity by therapeutic area and product and no significant patent "cliff" risk. The company's combined product pipeline, including a number of recently approved products, also gives Actavis a healthy organic growth outlook, Moody’s said.

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