NEW YORK (TheStreet) -- Valeant Pharmaceuticals (VRX) stock is down 5% to $27.53 in midday trading on Wednesday, after the company announced it is asking for a waiver to its credit facility. 

The Quebec-based pharmaceutical company announced on Wednesday that it is seeking to extend the deadline for filing its Form 10-K to May 31. The extended deadline will "provide relief under the credit facility" if Valeant does not file its annual report by April 29.

"What Valeant is saying is, 'Listen, maybe we get to waive our debt agreements,'" TheStreet's Action Alerts PLUS Portfolio Manager Jim Cramer said in the video, above.

"Well, I don't like companies that waive debt agreements," Cramer added. "I like companies that pay their debt. So, Valeant, not so hot."

Valeant also requested that lenders extend the company's deadline for filing its Form 10-Q, or quarterly report, to July 31 in case the company cannot file the report by June 14. The waiver must be approved by lenders that hold more than 50% of the company's loans in principal amount, Valeant said.

"The company is comfortable with its current liquidity position and cash flow generation for the rest of the year, and remains well positioned to meet its obligations," the company said in a statement. 

Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings rates this stock as a "hold" with a ratings score of C. The company's strengths can be seen in multiple areas, such as its robust revenue growth and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share.

You can view the full analysis from the report here: VRX

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