Bausch Health Cos. Inc. has received a favorable outcome in its ongoing patent dispute with Norwich Pharmaceuticals. We now believe that generic competition to top product Xifaxan will not launch until late 2026 at the earliest. We raised our issuer credit rating on Bausch Health to 'CCC+' from 'CCC'. We also raised our issue-level ratings on the senior secured debt to 'B-' from 'CCC+', and our ratings on the second-lien notes and unsecured notes to 'CCC' from 'CCC-'. The negative outlook reflects the risk that Bausch Health could pursue distressed exchanges as it approaches its sizable debt maturities. Furthermore, we believe that this court decision makes the separation of subsidiary Bausch + Lomb Corp. (B+L) more likely. The company appears
