TEXT-S&P revises Patheon Inc recovery rating to '3'
Dec 5 - Standard & Poor's Ratings Services said today that it is revising its recovery rating on the senior secured credit facilities of Research Triangle Park, N.C.-based pharmaceutical contract manufacturer Patheon Inc. to '3', indicating our expectation for meaningful (50% to 70%) recovery for lenders in the event of a payment default, from '4' (30% to 50% average recovery expectation). The revision reflects the addition of a financial maintenance covenant to the senior secured credit facilities. Our 'B+' corporate credit rating on Patheon and our 'B+' issue-level rating on the company's senior secured debt are unaffected. The rating outlook remains negative, reflecting integration risk. RELATED CRITERIA AND RESEARCH -- Business Risk/Financial Risk Matrix Expanded, Sept. 18, 2012 -- Liquidity Descriptors For Global Corporate Issuers, Sept. 28, 2011 -- Criteria Guidelines For Recovery Ratings, Aug. 10, 2009 -- 2008 Corporate Criteria: Analytical Methodology, April 15, 2008 -- 2008 Corporate Criteria: Rating Each Issue, April 15, 2008 -- 2008 Corporate Criteria: Ratios And Adjustments, April 15, 2008 RATINGS LIST Ratings Unchanged Patheon Inc. Corporate Credit Rating B+/Negative/-- Ratings Unchanged; Recovery Revision Patheon Inc. To From Senior Secured B+ B+ Recovery Rating 3 4 Complete ratings information is available to subscribers of RatingsDirect on the Global Credit Portal at www.globalcreditportal.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com. Use the Ratings search box located in the left column.
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