S&P places Schering on credit watch |
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Mon, 12 Mar 2007 21:40
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NEW YORK (AP) - Credit agency Standard & Poor's Ratings Services said Monday it placed its debt ratings on pharmaceutical company Schering-Plough Corp. on CreditWatch with negative implications.The move follows Schering-Plough's announcement that it is planning to buy Organon BioSciences for $14.4 billion in cash, S&P said, adding that the acquisition will add 'a significant amount of debt' to Schering-Plough's books.However, the company's credit rating 'has the potential to remain at the investment-grade level,' S&P analyst Arthur Wong said, given that the company's management has 'a demonstrated history of conservative financial policies and actions.'S&P placed the company's 'A-' long-term and 'A-2' short-term corporate credit ratings on CreditWatch, among others.Shares of the company rose 10 cents to $23.95 in late trading on the New York Stock Exchange.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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