Research Update: Bausch Health Cos. Inc. Upgraded To 'CCC' From 'SD' Following Distressed Exchange; Outlook Negative - S&P Global Ratings’ Credit Research

Research Update: Bausch Health Cos. Inc. Upgraded To 'CCC' From 'SD' Following Distressed Exchange; Outlook Negative

Research Update: Bausch Health Cos. Inc. Upgraded To 'CCC' From 'SD' Following Distressed Exchange; Outlook Negative - S&P Global Ratings’ Credit Research
Research Update: Bausch Health Cos. Inc. Upgraded To 'CCC' From 'SD' Following Distressed Exchange; Outlook Negative
Published Feb 28, 2023
7 pages (2788 words) — Published Feb 28, 2023
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

Bausch Health Cos. Inc. (BHC) recently disclosed a below-par repurchase of debt, which we viewed as a distressed exchange. We continue to believe BHC's capital structure could be unsustainable due to potentially near-term generic competition to top product Xifaxan and believe future subpar repurchases are likely due to the significant trading discount. We raised our issuer credit rating on BHC to 'CCC' from 'SD'. We raised our ratings on the repurchased unsecured notes to 'CCC-' from 'D'. We lowered our issue-level ratings on BHC's existing senior secured debt to 'CCC+' from 'B-' and our ratings on the 14% second-lien notes due 2030 and 9% unsecured notes due 2025 to 'CCC-' from 'CCC'. The negative outlook reflects the heightened risk that

  
Brief Excerpt:

...- Bausch Health Cos. Inc. (BHC) recently disclosed a below-par repurchase of debt, which we viewed as a distressed exchange. - We continue to believe BHC's capital structure could be unsustainable due to potentially near-term generic competition to top product Xifaxan and believe future subpar repurchases are likely due to the significant trading discount. - We raised our issuer credit rating on BHC to '###' from '##'. - We raised our ratings on the repurchased unsecured notes to '###-' from 'D'. We lowered our issue-level ratings on BHC's existing senior secured debt to '###+' from 'B-' and our ratings on the 14% second-lien notes due 2030 and 9% unsecured notes due 2025 to '###-' from '###'. - The negative outlook reflects the heightened risk that BHC could complete more distressed exchanges over the next 12 months....

  
Report Type:

Research Update

Ticker
VRX
Issuer
Bausch Health Cos. Inc.
GICS
Pharmaceuticals (35202010)
Sector
Global Issuers
Country
Canada
Region
Canada
Format:
PDF Adobe Acrobat
Buy Now

More from S&P Global Ratings’ Credit Research

S&P Global Ratings’ Credit Research—S&P Global Ratings’ credit research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P Global Ratings also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.

About the Author


Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: Bausch Health Cos. Inc. Upgraded To 'CCC' From 'SD' Following Distressed Exchange; Outlook Negative" Feb 28, 2023. Alacra Store. May 23, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Bausch-Health-Cos-Inc-Upgraded-To-CCC-From-SD-Following-Distressed-Exchange-Outlook-Negative-2954434>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: Bausch Health Cos. Inc. Upgraded To 'CCC' From 'SD' Following Distressed Exchange; Outlook Negative Feb 28, 2023. New York, NY: Alacra Store. Retrieved May 23, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Bausch-Health-Cos-Inc-Upgraded-To-CCC-From-SD-Following-Distressed-Exchange-Outlook-Negative-2954434>
  
US$ 225.00
$  £  €
Have a Question?

Any questions about the report you're considering? Our Customer Service Team can help! Or visit our FAQs.

More Research

Search all our Credit Research from one place.