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S&P lowers issue-level rating on Endo International's senior secured debt


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S&P lowers issue-level rating on Endo International's senior secured debt

S&P Global Ratings lowered the issue-level rating on Endo International PLC senior secured debt to B+ from BB- following plans by the company's unit to refinance $1 billion of senior notes.

The rating agency said Endo's long-term issuer credit rating of B and the stable outlook on the company remain unchanged.

S&P Global Ratings also revised its recovery rating to 2 from 1, which indicates that an 80% recovery is expected in the event of a payment default.

The downgrade to the issue-level rating on Endo's senior secured debt represents the incremental weakening of recovery prospects because secured debt will now represent a larger proportion of the company's capital structure, according to the rating agency.

S&P Global Ratings, however, views the transaction, including the proposed extension of the credit facility as positive for the Dublin-based company's liquidity profile because it extends overall maturity schedule and lowers the amount due in 2022.

The rating agency added that the opioid litigation is a significant risk for the company, though the U.S. generic market is stabilizing and Endo's top branded products still have a significant runway.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.