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Bulletin: Covidien PLC's Rating Unaffected By Pharmaceuticals Spin-Off Dec 11
Standard & Poors, Dec 2011
Abstract
NEW YORK (Standard & Poor's) Dec. 15, 2011--Standard & Poor's Ratings Services said today that Covidien PLC's plan to spin off its pharmaceuticals business will not affect our ratings on the company. The transaction is expected to take up to 18 months to complete. While the pharmaceuticals segment accounted for 17% of total 2011 sales, it contributed only 11% of operating income. As a result, the post-spin Covidien should produce higher EBITDA margins. Additionally, we expect the capitalization of the post-spin Covidien to be downsized proportionately, and debt leverage to remain at current levels; for fiscal 2011, adjusted debt to EBITDA was 1.5x....
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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