S&P might lower AbbVie

Standard & Poor's said it placed its A corporate credit rating and senior unsecured debt rating on AbbVie Inc. on CreditWatch with negative implications.

This action reflects AbbVie's announcement that it will acquire Shire plc for $54.7 billion, partly funded with incremental debt. Pro forma leverage increases to 3.1x.

"AbbVie has a well-established position in the branded pharmaceuticals market, a highly profitable, market-leading product, and a promising medium-term pipeline," S&P credit analyst Michael Berrian said in a news release.

"The acquisition of Shire provides some diversity to AbbVie's portfolio through the addition of a neuroscience therapeutic segment (including a leading market position in the treatment of attention deficit hyperactivity disorder), five products that treat rare diseases, and an ulcerative colitis treatment. Pro forma for this acquisition, we expect AbbVie's concentration in rheumatoid arthritis (RA) and immunology to remain somewhat high at 45%, although that is a reduction from the current 57% for AbbVie as a standalone entity."

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