MUMBAI (Thomson Financial) - Standard & Poor's Ratings Services said it removed Schering-Plough Corp.'s ratings from negative watch and assigned them a stable outlook, while affirming the company's 'A-' long-term corporate credit rating.

The ratings had been placed on negative watch following the ENHANCE trial results, which showed that Schering-Plough's key cholesterol-lowering franchise, Vytorin/Zetia, was not any more effective than lower-cost statins in preventing heart disease.

The ratings on Schering-Plough continue to reflect the company's diverse product portfolio, absence of major patent expirations, over the intermediate term, an enhanced product pipeline following the Organon Biosciences acquisition and its conservative financial policies, S&P said.

Slightly offsetting these strengths is the fact that leverage is somewhat high for the current rating and that Vytorin/Zetia will likely face some market uncertainty over the near term, it added.

The Vytorin/Zetia franchise still faces some uncertainties, and meaningful sales growth will likely not be restored until 2010.

However, S&P believes that sales will not decline significantly further, based on recent stabilizing prescription trends, the absence of any safety concerns and questions on Vytorin/Zetia's ability to lower cholesterol levels, and that additional trial data will not be available until 2012. TFN.newsdesk@thomson.com ypv COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior