Bulletin: Valeant Pharmaceuticals International Inc. Ratings Unchanged Despite Lower 2017 Expectations

NEW YORK (S&P Global Ratings) Feb. 28, 2017--S&P Global Ratings said today its ratings and outlook on Valeant Pharmaceuticals International Inc. (B/Stable/--) are unchanged following the company's release of its 2017 adjusted EBITDA guidance of $3.55 billion to $3.7 billion, which is below our prior expectation of about $3.9 billion. The company's 2017 performance will be materially weaker than the $4.3 billion of EBITDA in 2016, because of the loss of exclusivity on certain neurology products in late 2016 and in 2017. We believe these expiring products, have above-average profitability, which will lead to a contraction in EBITDA margins to about 40%. We also expect quarterly EBITDA to generally grow sequentially over the course of 2017. In addition, the company

...NEW YORK (S&P Global Ratings) Feb. 28, 2017--S&P Global Ratings said today its ratings and outlook on Valeant Pharmaceuticals International Inc. (B/Stable/--) are unchanged following the company's release of its 2017 adjusted EBITDA guidance of $3.55 billion to $3.7 billion, which is below our prior expectation of about $3.9 billion. The company's 2017 performance will be materially weaker than the $4.3 billion of EBITDA in 2016, because of the loss of exclusivity on certain neurology products in late 2016 and in 2017. We believe these expiring products, have above-average profitability, which will lead to a contraction in EBITDA margins to about 40%. We also expect quarterly EBITDA to generally grow sequentially over the course of 2017. In addition, the company has indicated and demonstrated greater hesitancy about asset sales than we previously anticipated, which we view as incrementally negative. That said, the company's recent announcement of plans to sell various assets for $2.1 billion,...

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