TEXT-S&P rates Valeant Pharmaceuticals International

Fri Jun 29, 2012 4:51pm EDT

June 29 - Standard & Poor's Ratings Services said today that it assigned its
'BBB-' issue-level rating and '1' recovery rating to Montreal-based
pharmaceutical company Valeant Pharmaceuticals International Inc.'s  
incremental $100 million term loan B due Feb. 13, 2019. All other ratings,
including the 'BB' corporate credit rating, remain unchanged. The company
intends to use the proceeds from this issuance for general corporate purposes.
Although pro forma leverage increases to about 4x, this remains in line with our
expectation.

The ratings on Valeant reflect Standard & Poor's view that the company will 
maintain a "significant" financial risk profile. Despite our expectation of 
acquisition activity, we believe the company will only commit to acquisitions 
that do not result in leverage consistently above 4x, in line with their 
stated financial policy. Our consideration of Valeant's business risk profile 
as "fair" reflects the benefits of a broader product portfolio, geographic 
diversification, and expanded pipeline it has achieved through multiple 
acquisitions over the past two years. This is offset by the potential for 
integration issues, and the potential challenges of managing a very large 
portfolio of small products, given the high level of acquisition activity. 

RELATED CRITERIA AND RESEARCH
     -- Methodology And Assumptions: Liquidity Descriptors For Global 
Corporate Issuers, Sept. 28, 2011
     -- Criteria Guidelines For Recovery Ratings, Aug. 10, 2009
     -- Business Risk/Financial Risk Matrix Expanded, May 27, 2009
     -- 2008 Corporate Criteria: Analytical Methodology, April 15, 2008

RATINGS LIST

Valeant Pharmaceuticals International Inc.
 Corporate Credit Rating                    BB/Stable/--

New Ratings

Valeant Pharmaceuticals International Inc.
 Incremental $100 mil term loan B due 2019  BBB-
   Recovery Rating                          1
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