Pfizer Inc. #AA# Corporate Credit And Other Ratings Outlook Stable

Stocks and Financial Services Press Releases Tuesday November 29, 2016 09:10
TORONTO--29 Nov--S&P Global Ratings

TORONTO (S&P Global Ratings) Nov. 28, 2016--S&P Global Ratings today affirmed its 'AA' corporate credit and senior unsecured debt ratings, as well as its 'A-1+' short term and commercial paper rating, on Pfizer Inc. The outlook is stable.

New York City-based Pfizer is one of the largest pharmaceutical companies in the world, benefiting from a diverse portfolio of high-margin pharmaceuticals, with particular strengths in neurology, oncology, and vaccines. The portfolio is also backed by an improving product pipeline, bolstered recently by its acquisitions of Medivation Inc. and Anacor Pharmaceuticals Inc., both in 2016, and holds the promise of an ongoing stream of new products. Pfizer's sheer size and diversity also provide a significant competitive advantage. This top-line business risk profile is supported by a modest financial risk profile and policy, highlighted by expected long-term adjusted net leverage of 1.5x-2.0x.

Our stable rating outlook reflects the expectation that cash flow will continue to exceed internal needs and dividends, and enable the company to conduct share repurchases without significant deterioration to its credit measures.

A downgrade would require an unanticipated, dramatic negative industry development, such as price controls, or a shift to a more-aggressive financial policy. We believe that Pfizer currently has limited debt capacity at the current rating, and that any acquisition or share repurchase that would likely lead to leverage being sustained in excess of 2x over the next two years could prompt consideration for a downgrade.

We would consider an upgrade should Pfizer restore its financial leverage to a level that is consistently under 1.5x and refrain from pursuits that could materially affect its credit measures, such as considering a potential breakup of the company (which it has contemplated in the recent past).

Latest Press Release

Photo Release: CIMB Group Joins RippleNet to Power Instant Payments Across ASEAN

Tengku Dato' Sri Zafrul Aziz, Group CEO of CIMB Group (right), and Brad Garlinghouse, Ripple CEO (left) commemorating the strategic collaboration between CIMB Group and Ripple to power instant payments across ASEAN at the Singapore FinTech festival 2018...

CIMB Group Joins RippleNet to Power Instant Payments Across ASEAN

CIMB is one of the first banks to leverage blockchain technology to tap into region's USD120 billion remittance business CIMB Group ("CIMB" or "the Group") and Ripple have entered into a strategic collaboration to enable instant cross border payments...

Fitch Rates EXIM#s USD Senior Notes #BBB+(EXP)#

Fitch Ratings has assigned an expected rating of 'BBB+(EXP)' to Export-Import Bank of Thailand's (EXIM, BBB+/Stable) five-year senior unsecured notes of up to USD300 million. The notes will be issued under the bank's USD1.5 billion medium-term note (MTN)...

KTC joins hands with partners to launch new payment method Garmin Pay.

Mrs. Pittaya Vorapanyasakul (right center), Executive Vice President - Credit Card Business, "KTC" or Krungthai Card Public Company Limited together with Mr. Krairop Luang U-Thai (left center), General Manager, GIS Company Limited, Miss Aileen Chew...

Photo Release: Newly redesigned K-Cash Connect Plus website to facilitate business customers

Mr. Silawat Wantivisat, KBank Executive Vice President, introduced the newly redesigned K-Cash Connect Plus website, which is more user-friendly for business customers to facilitate their online financial transactions and data verification with greater...

Related Topics