Standard & Poor's Ratings Services reaffirmed its negative outlook for Barr Pharmaceuticals Inc.'s corporate credit rating, citing the proposed sale of the drug developer to rival Teva Pharmaceutical Industries Ltd.
Ratings for Montvale, N.J.-based Barr were originally were placed on a negative outlook on May 9 following disappointing earnings and sharply lowered expectations, S&P said. It reaffirmed the outlook Friday following Israel-based Teva's plan to by Barr for about $7 billion.
"Upon the completion of the acquisition of Barr by higher rated Teva, expected to close before the end of 2008, the corporate credit rating on Barr will be withdrawn," S&P credit analyst Arthur Wong said in a statement. "However, should the transaction not be completed, we will review Barr's prospects, with the potential for a ratings downgrade."
