On March 15, 2016, Canada-based Valeant Pharmaceuticals International Inc. lowered its revenue and EBITDA guidance to a level materially below our expectations. Given delays in reporting its 10-K, the company will likely violate reporting covenants this month and the company has until the end of April to resolve the covenants in the credit agreement to avoid the risk of acceleration. The company plans to pursue an amendment with bank debt lenders next week. Although the company states it will be able to meet financial covenants through 2016, the cushion on these covenants is diminishing. We are placing all our ratings on Valeant, including the 'B+' corporate credit rating, the 'BB' senior secured debt ratings, and the 'B-' unsecured debt ratings,
