S&P puts Charles River Labs on watch

S&P said it is placing the BBB- long-term issuer credit rating and all issue-level ratings on Charles River Laboratories International Inc. on CreditWatch with negative implications based on S&P’s view of a more aggressive financial policy resulting from the proposed acquisition of CRO Citoxlab for €448 million.

“We believe the acquisition will delay deleveraging below 3x until 2020 and is indicative of a more aggressive financial policy than in prior years, as the company had previously deleveraged to the mid-2x range before embarking on a subsequent material acquisition.

“We expect to resolve the CreditWatch at the completion of the acquisition and to lower the ratings, including the long-term issuer credit rating to BB+ from BBB-,” S&P said in a news release.

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