Canadian pharmaceutical company Valeant Pharmaceuticals International Inc. was unsuccessful in its bid to acquire Cephalon Inc. for $5.7 billion. We are affirming the 'BB-' corporate credit rating and removing the ratings from CreditWatch with negative implications. The stable outlook on Valeant Pharmaceuticals Inc. reflects our expectation that the company will remain acquisitive, but will not increase leverage above 4x on a sustained basis, in line with its stated financial policy. On May 26, 2011, Standard&Poor's Ratings Services affirmed its 'BB-' corporate credit rating on Mississauga, Ontario-based Valeant Pharmaceuticals International Inc. At the same time, we affirmed the 'BB-' issue-level rating (the same as the corporate credit rating), on subsidiary Valeant Pharmaceuticals International's senior unsecured notes. We removed all
