Fitch assigns A+ to Merck notes

Fitch Ratings said it assigned an A+ rating Merck & Co.'s euro-denominated senior unsecured notes offering.

The outlook is negative and applies to about $23.1 billion in outstanding debt.

Merck intends to use all or a substantial portion of the net proceeds to refinance existing debt.

Fitch said the negative outlook mainly reflects that leverage (total debt/EBITDA) has remained above 1.5 times since Merck's $5 billion, largely debt-funded share repurchases in second-quarter 2013. While leverage has declined to 1.52 times from its peak of 1.92 times at June 30, 2013, the Oct. 1, 2014 sale of its consumer business to Bayer will modestly weigh on EBITDA and leverage.

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