Moody's Raised Mylan (MYL) Back to Investment Grade

November 20, 2012 10:21 AM EST
Moody's Investors Service upgraded Mylan Inc. (NYSE: MYL) to investment grade, including the senior unsecured rating to Baa3 from Ba2. At the same time, Moody's affirmed Mylan's Baa2 senior secured bank rating. The upgrade results in a withdrawal of the Ba1 Corporate Family Rating, Ba1 Probability of Default rating and SGL-2 Speculative Grade Liquidity Rating as these measures are applicable only for non-investment grade companies.

Ratings upgraded:

Senior secured notes to Baa3 from Ba2 (LGD 5, 74%) (LGD point estimates withdrawn)

Ratings affirmed:

Baa2 senior secured revolving credit facility (LGD point estimates withdrawn)

Baa2 senior secured term loans (LGD point estimates withdrawn)

Ratings withdrawn:

Ba1 Corporate Family Rating

Ba1 Probability of Default Rating

SGL-2 Speculative Grade Liquidity Rating

The upgrade reflects Moody's expectation that Mylan will maintain a capital structure that supports an investment grade rating, and that strong operating results will result in rising EBITDA and cash flow in the coming years.

"Mylan's publicly-articulated 3.0-times debt/EBITDA target supports an investment grade rating when considered in tandem with its strong global position and good growth outlook," stated Michael Levesque, Moody's Senior Vice President.

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