Valeant Shatters Creditor Calm as Debt Casts Bigger Shadow
Valeant Analyst Sees More Downside After Downgrade
This article is for subscribers only.
Valeant Pharmaceuticals International Inc. is losing the confidence of its biggest investor base: debt markets that lent the drugmaker more than $30 billion to fund its rapid expansion.
The company’s bonds plunged Tuesday by the most ever, pushing the yield on its most actively traded securities above 10 percent for the first time after it slashed its forecast for the year and warned that it may breach debt agreements. Standard & Poor’s and Barclays Plc lowered their outlook on the debt, and Moody’s Investors Service cut its credit rating on the company deeper into junk.