S&P Global Ratings revised its CreditWatch implications on Akorn Inc.'s ratings, including the B+ corporate credit rating, to developing from positive.
The company's ratings were first placed on CreditWatch on April 10, 2017, following confirmation from Fresenius SE & Co. KGaA that it was in talks to acquire Akorn.
The change reflects the company's weak operating performance since the second quarter. The rating agency said pricing pressure and competitive challenges contributed to the company's steep decline revenue.
S&P said the company's full-year revenue for 2017 declined nearly 25% and its leverage rose to the high-3x area from 1.7x at the end of 2016.
The rating agency said it plans to resolve the CreditWatch and could raise the ratings if the company is acquired by Fresenius. S&P could also resolve the CreditWatch and lower the ratings if the company's operating performance continues to be weak.
S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.
