S&P puts Allergan on positive watch

S&P said it is placing all of its ratings on Allergan plc on CreditWatch with positive implications to reflect S&P’s view that the company will be a core holding of higher-rated AbbVie Inc. Therefore, S&P intends to equalize its ratings on Allergan with its ratings on AbbVie.

S&P said it expects to lower its ratings on AbbVie to BBB+ from A- at the close of the transaction.

AbbVie announced that it has agreed to acquire Allergan in a transaction that values the company's equity at $63 billion. In addition, AbbVie will assume Allergan's $23 billion of existing debt.

“The CreditWatch placement reflects our view that Allergan will be a core holding of higher-rated AbbVie. Therefore, we intend to equalize our ratings on Allergan with our ratings on AbbVie,” S&P said in a news release.

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