trending Market Intelligence /marketintelligence/en/news-insights/trending/ciI2AfmAw6WDXxixsCFIsQ2 content esgSubNav
In This List

S&P places Mallinckrodt's ratings on CreditWatch after Sucampo deal


Baird Research is Now Exclusively Available in S&P Global’s Aftermarket Research Collection


Japan M&A By the Numbers: Q4 2023


Essential IR Insights Newsletter Fall - 2023

Case Study

A Corporation Clearly Pinpoints Activist Investor Activity

S&P places Mallinckrodt's ratings on CreditWatch after Sucampo deal

S&P Global Ratings placed its ratings on Mallinckrodt Plc, including the BB- corporate credit rating, on CreditWatch with negative implications.

The CreditWatch placement comes after the company's decision to acquire Sucampo Pharmaceuticals Inc. for $1.2 billion.

S&P said the acquisition raises the company's debt leverage, and the agency believes that despite the company's solid cash flow generation, adjusted debt leverage could remain elevated.

The rating agency expects to resolve the CreditWatch when the transaction closes and may update the CreditWatch when it has more clarity about the company's expectations for 2018 and further information on the company's financial policy and its plans to reduce leverage.

S&P anticipates that if it lowers the rating, it would be limited to one notch.

S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.