Moody's boosts Abbott Labs

Moody's Investors Service said it raised Abbott Laboratories and its wholly-owned and guaranteed subsidiary, Abbott Ireland Financing DAC's senior unsecured ratings to A1 from A2.

“The upgrade reflects Abbott's consistent execution across its portfolio for an extended period of time. Abbott benefits from a highly diversified business model, the benefits of which were evident during the coronavirus pandemic as the company was able to maintain stable earnings and cash flows. Positive consideration also includes the continued rapid growth of its FreeStyle Libre Continuous Glucose Monitoring system. This is a significant and rapid growing franchise for Abbott representing more than 10% of Abbott's revenue (excluding Covid-19 related revenues) and has been growing more than 30% in recent quarters.

“The company continues to demonstrate growth in revenues and earnings (even excluding its Covid-19 related revenues) well above most peers,” the agency said in a press release.

The outlook remains stable.

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