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

KASIKORNBANK announces 2018 net profit of Baht 38,459 Million

Mr. Patchara Samalapa, President of KASIKORNBANK, said KASIKORNBANK announced net profit for the year of 2018 of Baht 38,459 Million, an increase of Baht 4,121 Million or 12.00% over the previous year. Operating performance for the year of 2018 compared...

Siam Commercial Bank reported 2018 net profit of Baht 40.1 billion

Siam Commercial Bank and its subsidiaries announced net profit of Baht 7.1 billion in the fourth quarter of 2018 and Baht 40.1 billion for 2018 (based on unaudited consolidated financial statements), a 7.1% yoy decrease from a year ago. Total operating...

Johnson Johnson Completes Acquisition of Ci:z Holdings Co., Ltd.

Johnson & Johnson (NYSE:JNJ) today announced the completion of the acquisition of Ci:z Holdings Co., Ltd. (TYO: 4924) (the "Company") for a total purchase price of approximately JPY / CNY230 billion. The acquisition was completed through a series of...

Siam Commercial Bank Partners with Chaixi Bameekiao and Visa To facilitate QR payment for noodle franchise

- Ms. Pimjai Tongmee, SCB's Payment Product Sales and Delivery Division Executive Vice President - Mr. Panrob Kamla, President of Chaixi Bameekiao Co. Ltd - Mr. Suripong Tantiyanon, Country Manager for Visa Thailand "Siam Commercial Bank" (SCB)...

Isotropic Systems Raises $14 Million in Series A Funding Led by Boeing HorizonX Ventures to Advance Space-Based Connectivity

- Isotropic's approach to next-generation integrated terminal creates profound change in terminal economics and performance to unlock the satellite industry's full potential Isotropic Systems Ltd., the next-generation integrated satellite terminal...

Related Topics