The Strategist

Fitch downgrades Pfizer’s rating to 'A'

08/05/2019 - 12:33

The international rating agency Fitch downgraded the long-term issuer default rating (IDR) of the pharmaceutical company Pfizer to “A” from “A +” with a “negative” outlook, the agency said.

colros via flickr
colros via flickr
At the same time, the agency confirmed Pfizer's short-term IDR at 'F1'.

"The acquisition of Array BioPharma for $ 11.4 billion increases leverage, as Fitch suggests that Pfizer will finance the acquisition mainly by raising borrowed funds," the agency said in a release.

At the same time, according to the agency, the merger of Upjohn’s generic company, Pfizer's division, with Mylan will bring Pfizer $ 12 billion, part of which will be spent on debt repayment.

In late July, Pfizer Inc. announced completion of the acquisition of biopharmaceutical company Array BioPharma for $ 11.4 billion. It is expected that this purchase will help Pfizer strengthen its innovative biopharmaceutical industry and help accelerate growth in the long term.

In the same month, Pfizer agreed to merge its Upjohn generic business with Mylan. Pfizer shareholders will own 57% of the new company, and Mylan shareholders will receive 43%.