S&P Boosts Ratings On Drug Developer Mylan

NEW YORK (AP) — Standard & Poor's Ratings Services upgraded ratings on Mylan Inc., citing the drug developer's move to repay debt and improved margins.

S&P boosted its corporate credit rating on the Canonsburg, Pa.-based company to "BB" from "BB-." S&P also raised the senior secured rating to "BB+" from "BB," both of which are non-investment grade. The senior unsecured rating was raised to "BB-," from "B+." Also, the preferred stock rating moved up to "B'' from "B-." All of the ratings are non-investment grade.

S&P said the outlook for the company is stable, based on improving operating performance that will likely be sustained.

"The upgrade of Mylan reflects its improved operating performance over the past year, success in integrating the Merck KGaA's generic business, significant reduction in leverage, and strong liquidity," said S&P credit analyst David Lugg, in a statement.

He said the 2007 buyout of Merck KGaA's generic operations helped Mylan attain a global stature.

Shares of Mylan fell 8 cents to $16.13 in after-hours trading after rising 8 cents to close at $16.21 during the regular trading session.