S&P Global Ratings affirmed Allergan plc's BBB long-term corporate credit rating and revised the outlook to stable from positive.
The rating agency said the revised outlook reflects its expectation that Allergan will maintain leverage between 3x to 4x over the next two years, below its previous forecast of leverage below 3x by 2018 through EBITDA expansion.
In addition, the agency believes an additional turn of deleveraging is less likely because of the loss of exclusivity for its dry eye drug Restasis and other products.
S&P added that the stable outlook reflects the fact that Allergan's established and future pipeline launches will mostly offset the $3 billion loss of exclusivity of Restasis and other products by 2020.
S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.
