Moody's puts Angiotech ratings on review

Moody's said the review affects $575 million of rated debt securities. Angiotech has a 'B3' corporate family rating and a 'B2' probability of default rating, both of which are "highly speculative." Moody's did lower Angiotech's speculative-grade liquidity assessment to SGL-4 from SGL-3, reflecting the company's weak liquidity profile, it said.

Although the company is taking steps to lower its research and development expenses, Moody's said, a reduction in Taxus royalty revenue is expected to occur later this year. Taxus is a stent made by Boston Scientific Corp., and Angiotech supplies the drug coating.

Stents are used to open and unclog blocked arteries, and drug coatings are used to prevent the growth of scar tissue.

Moody's said it will consider the company's progress in reducing expenses when reviewing the ratings.

Shares of New York-based Angiotech rose 3 cents to $3.06 in afternoon trading.