S&P lowers Pfizer

S&P said it lowered all its ratings on Pfizer Inc., including its issuer credit rating on the company, to A from A+.

Pfizer announced its 2024 guidance and S&P said it now estimates leverage will cling above 2.5x for a few years.

“Our projections for Pfizer for 2024 are largely in line with the company's new guidance, which assumes Covid product revenue for 2024 will be approximately $4 billion lower than management's 2023 forecast, but also assumes 3%-5% growth of the non-Covid portfolio. However, because of restructuring expenses and significant transition tax payments, we anticipate Pfizer's discretionary cash flow will be negative in 2024 and relatively modest until 2027 when transition tax payments end,” the agency said in a press release.

S&P said it projects leverage will be 3.3x-3.5x in 2024 and 2.7x-2.9x in 2025. “Beyond 2025, we expect modest deleveraging because free cash flow generation will likely remain low before improving in 2027.”

The outlook is stable.

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