S&P lowers NBTY credit rating
This article was originally published in The Tan Sheet
Executive Summary
Standard & Poor's lowers the vitamin and supplement maker's credit rating from 'BB' to 'B+' in light of the Carlyle Group's planned acquisiton. The change "reflects weakened credit measures" from Carlyle's proposed capital structure for NBTY, including about $2 billion in additional debt, analyst Jacqueline Hui said in an Aug. 26 release. But the rating service deemed NBTY "stable," saying the company likely will "maintain pro forma credit metrics in line with the current rating over the near term." NBTY remains in a strong market position, but the supplement market is highly competitive, S&P noted. Carlyle announced its $3.8 billion acqusition July 15 (1"The Tan Sheet" July 19, 2010)