...- Mallinckrodt PLC recently disclosed a below-par repurchase of debt, which we viewed as a distressed exchange. - Notwithstanding our expectations for free cash flow generation over the next few years, we believe there is elevated risk of the company repurchasing debt below par over the coming year due to refinancing risk and the significant trading discount. - We raised our issuer credit rating on Mallinckrodt to '###' from '##'. - We raised our ratings on the 2029 second-lien notes, which was the issue that had been partially repurchased below par, to '##' from 'D'. - We lowered our issue-level ratings on Mallinckrodt's existing senior secured debt to '###+' from 'B' and our ratings on the second-lien notes due 2025 to '##' from '###'. Our recovery ratings of '2' and '6', on these issues, respectively, are unchanged. - Our negative outlook reflects the heightened risk of further below-par debt repurchases within the next 12 months, which we could view as distressed exchanges. It also...
