...NEW YORK (Standard & Poor's) March 9, 2017--S&P Global Ratings today assigned its '##-' issue-level rating to Canada-based Valeant Pharmaceuticals International Inc.'s proposed $2.5 billion senior secured notes, which will be issued in two tranches maturing 2022 and 2024. The recovery rating on this debt is '1', indicating our expectations for very high (90%-100%; rounded estimate: 95%) recovery in the event of default. The company plans to use the proceeds to repay earlier maturing debt, in a leverage-neutral transaction. Our 'B' corporate credit rating reflects our assessment of the company's high debt leverage of about 8x for 2017, and substantial free cash flow generation (helped by a low tax rate). It also takes into account our assessment of business risk, which is characterized by the company's substantial scale and extensive product, therapeutic, payer, and geographic diversification. This is partially offset by the relatively low level of investment in research and development,...
