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Bulletin: Covidien PLC Rating Not Affected By Potential Sale Of Pharmaceuticals Business Jun 11
Standard & Poors, June 2011
Abstract
NEW YORK (Standard & Poor's) June 8, 2011--Standard & Poor's Ratings Services said today the sale of Covidien PLC's pharmaceuticals business would likely not have a negative impact on our A/Stable/A-1 rating for Covidien. A news article claimed that Covidien PLC has engaged JPMorgan Chase & Co. to explore options for sale of this unit. For the six months ended March 25, 2011, the pharmaceuticals unit accounted for about 20% of sales, but only 14% of operating income (before corporate expenses). Furthermore, Covidien has been facing competitive pressures in its generic drug business. We believe that diversity within the company's medical device portfolio, in addition to its medical supplies business segment, would continue to support its strong business risk profile...
Companies mentioned in this report are: Covidien PLC
Action: Bulletin
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.
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