S&P Warns It May Cut Valeant Credit Ratings Deeper Into Junk

Valeant Analyst: More Bad News to Come

Standard & Poor’s said it may lower its debt ratings for Valeant Pharmaceuticals International Inc. deeper into junk after the drugmaker slashed its earnings and revenue forecast for the year and warned that a delay in filing its annual report may breach debt agreements.

Valeant’s B+ rating has been placed on negative credit watch reflecting “the preponderance of risks we see in the near term that could further weaken creditworthiness,” S&P said in a statement Tuesday.

Moody’s Investors Service cut its credit rating on Valeant to an equivalent B1, or four steps below investment grade, from Ba3 following a review that began Feb. 29, the credit grader said in a statement Tuesday.

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