Mallinckrodt PLC Outlook Revised To Negative From Stable; 'BB-' Corp. Credit Rating Affirmed

Mallinckrodt PLC is acquiring Therakos Inc. for $1.325 billion in a mostly debt-financed transaction. We now expect pro forma leverage of almost 5x by the end of 2016, modestly higher than our prior base-case scenario. We are affirming our 'BB-' corporate credit rating, but revising the outlook to negative from stable. The negative outlook reflects risks to our base case that Mallinckrodt will not be able to reduce leverage to less than 5x by the end of 2016. NEW YORK (Standard&Poor's) Aug. 11, 2015--Standard&Poor's Ratings Services today affirmed its 'BB-'corporate credit rating on Dublin, Ireland-based Mallinckrodt PLC and revised the outlook to negative from stable. We will review the issue-level and recovery ratings when more detail

...+ Mallinckrodt PLC is acquiring Therakos Inc. for $1.325 billion in a mostly debt-financed transaction. + We now expect pro forma leverage of almost 5x by the end of 2016, modestly higher than our prior base-case scenario. + We are affirming our '##-' corporate credit rating, but revising the outlook to negative from stable. + The negative outlook reflects risks to our base case that Mallinckrodt will not be able to reduce leverage to less than 5x by the end of 2016. NEW YORK (Standard & Poor's) Aug. 11, 2015--Standard & Poor's Ratings Services today affirmed its '##-'corporate credit rating on Dublin, Ireland-based Mallinckrodt PLC and revised the outlook to negative from stable. We will review the issue-level and recovery ratings when more detail surrounding the financing plan and capital structure becomes available. "The rating affirmation reflects Mallinckrodt's recent financial performance that is exceeding our expectations, giving the company capacity to fund this acquisition which...

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