The speculative-grade rating on Aliso Viejo, Calif.-based specialty pharmaceutical company Valeant Pharmaceuticals Intl reflects the company's challenges in generating earnings and cash flow growth, given the mixed prospects of its portfolio and pipeline, and its high debt leverage. These factors are somewhat offset by Valeant's diverse product portfolio and limited debt maturities over the intermediate term. Valeant manufactures and distributes a wide range of pharmaceutical products in the North American, European, and Latin American markets. The company's portfolio largely is a mix of branded and branded-generic niche products in a variety of therapeutic classes, including dermatology, neurology, and infectious disease. The portfolio is very diverse, with no single product accounting for more than 10% of sales, and generates relatively stable
