On Nov. 16, 2006, Standard&Poor's Ratings Services lowered its ratings on Costa Mesa, Calif.-based Valeant Pharmaceuticals International. The corporate credit rating was lowered to 'B+' from 'BB-'. The ratings remain on CreditWatch with negative implications, where they were placed Oct. 24, 2006 to reflect the ongoing uncertainty regarding the company's inability to file its Form 10-Q for the third quarter and the consequences if the company is not able to resolve the situation in 60 days. The ratings downgrade reflects Standard&Poor's concern regarding specialty pharmaceutical company Valeant's continued struggles to generate earnings and cash flow growth. Sales growth of the company's core product portfolio has been tepid. Valeant is highly reliant on product acquisitions for growth.
