Valeant Bond Price Pukes As Moody’s Threatens Downgrade Over Weak Performance

With CDS markets implying around a 40% probability of default, Moody’s has issued a warning over Valeant’s deleveraging prospects (and ability to deliver sustainable growth) putting $31 billion of biotech debt on watch for downgrade. VRX bonds are down dramatically on the day.. not the forst day back at work Pearson was hoping for.
As Moody’s writes, this rating action reflects concerns that Valeant’s underlying operating performance is weaker than Moody’s previous expectations, potentially impeding the company’s deleveraging plans, the agency said.

This post was published at Zero Hedge on 02/29/2016.