S&P rates Organon notes BB, BB-

S&P said it assigned its BB issue-level rating and 3 recovery rating to Organon & Co.'s proposed senior secured notes due 2028, which it will issue in two tranches (a $2 billion tranche and a $1 billion euro-denominated tranche). The 3 recovery rating indicates an expectation for meaningful recovery (50%-70%; rounded estimate: 55%) in the event of a payment default.

At the same time, S&P said it assigned a BB- issue-level rating and 5 recovery rating to the company's proposed $1.5 billion senior unsecured notes due 2031. The 5 recovery rating indicates an expectation for modest recovery (10%-30%; rounded estimate: 25%) in the event of a payment default.

The BB long-term issuer credit rating and stable outlook on Organon are unchanged, S&P said.

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