TEXT-S&P revises Patheon Inc recovery rating to '3'

Wed Dec 5, 2012 12:11pm EST
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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.

     -- 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 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