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TEXT-S&P rates Allergan Inc
October 25, 2012 / 5:56 PM / 5 years ago

TEXT-S&P rates Allergan Inc

Oct 25 - Standard & Poor's Ratings Services said today that it assigned the
senior unsecured debt securities filed under Irvine, Ca.-based Allergan Inc.'s
 Rule 415 shelf registration a preliminary 'A+' rating. The filing falls
under the SEC's well-known seasoned issuer (WKSI) rules, which do not require a
dollar amount of securities to be registered. Each time the company sells
securities, it will provide a prospectus supplement that will contain specific
information about the terms of that offering.

Our rating on specialty pharmaceutical and medical-device company Allergan 
reflects its "strong" business risk profile and "minimal" financial risk 
profile, based on our criteria. The strong business risk profile reflects the 
company's leading positions in specialty pharmaceutical (82% of sales for the 
first half of 2012) and medical products (18%) markets, with minimal 
competitive threats and good product and geographic diversity. Concentration 
in sales of Botox (30% of total sales) is mitigated by the product split of 
51% for therapeutic use and 49% for cosmetic indications. Allergan focuses on 
pharmaceutical treatments for the ophthalmic, neurological, medical 
aesthetics, medical dermatology, breast aesthetics, obesity intervention, 
urological, and other specialty areas. Other risks, which the company 
continues to manage well, include increasing global pressures on 
reimbursement, high R&D spending to maintain its competitive advantage and 
niche products, legal challenges, and modest sensitivity to economic cycles. 
Minimal financial risk is characterized by strong cash flows, low debt 
leverage, and exceptional liquidity.

RELATED CRITERIA AND RESEARCH
     -- Methodology: Business Risk/Financial Risk Matrix Expanded, Sept. 18, 
2012
     -- Liquidity Descriptors For Global Corporate Issuers, Sept. 28, 2011
     -- 2008 Corporate Criteria: Analytical Methodology, April 15, 2008
     -- 2008 Corporate Criteria: Rating Each Issue, April 15, 2008
     -- 2008 Corporate Criteria: Ratios And Adjustments, April 15, 2008
 
RATINGS LIST

Ratings Unchanged

Allergan Inc.
 Corporate Credit Rating                A+/Stable/A-1+

New Rating

Allergan Inc.
 Sr unsecd (WKSI) shelf registration    A+(prelim)

Our Standards:The Thomson Reuters Trust Principles.
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