...- Bausch Health Cos. Inc. has experienced slower-than-expected deleveraging because of continued operational headwinds and lower-than-expected proceeds from the IPO of about 10% of its subsidiary Bausch + Lomb Corp. (B+L) earlier this month. - We now believe there is growing uncertainty around Bausch Health's ability to replenish its pipeline amid the B+L spin-off and prior to the loss of exclusivity (LOE) on its top product, Xifaxan in 2028. As a result, we view the company's business prospects as incrementally more challenging. - We lowered our issuer credit rating on Bausch to 'B' from 'B+'. At the same time, we lowered our rating on the senior secured debt to '##-' from '##' and our rating on the unsecured debt to 'B-' from 'B'. - The negative outlook reflects a confluence of downside risks related to the Xifaxan litigation, the planned spin-offs of B+L and Solta, and uncertainty around management's long-term business strategy....
