Fitch: Bristol-Myers view negative

Fitch Ratings said it affirmed Bristol-Myers Squibb Co.'s issuer default rating at A- and revised the outlook to negative from stable.

The action follows the company's announced plan to sell its diabetes business to AstraZeneca. The ratings apply to about $6.78 billion of debt outstanding at Sept. 30.

Fitch said it believes the sale of the company's diabetes business will reduce EBITDA beginning in 2014, relative to the prior forecast. The agency does not expect Bristol-Myers to use any of the proceeds from the sale to reduce debt.

These factors, coupled with pressure related to 2015 - 2016 patent expiries mean that gross debt leverage (total debt/operating EBITDA) may increase above 2.0 times during 2015-2016.

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