Takeda Pharmaceutical has announced a plan to buy pharmaceutical company Nycomed for -9.6 billion. Standard & Poor's believes Takeda's financial profile will deteriorate because it plans to cover the cost of the acquisition with liquidity on hand and bank borrowings, although the acquisition will strengthen the geographic diversification of the company's business. We placed the long- and short-term ratings on Takeda on CreditWatch with negative implications. We will resolve the CreditWatch placement after examining the prospects for Takeda to achieve benefits through integration and streamlining following the acquisition. Among other factors, we will assess the likelihood and pace of a recovery in Takeda's financial risk profile. TOKYO (Standard & Poor's) May 19, 2011--Standard & Poor's Ratings Services today placed its...
Companies mentioned in this report are: Takeda Pharmaceutical Co. Ltd.,Nycomed S.C.A. SICAR
Action: On CreditWatch:Negative
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Research type: News
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