Moody's gives Eli Lilly notes Aa3

Moody's Investors Service said it assigned a rating of Aa3 to the new $1.5 billion senior unsecured extendible note offering of Eli Lilly Services, Inc., based on the unconditional and irrevocable guarantee from Eli Lilly and Co., rated Aa3.

The outlook is stable.

Moody's said it understands that the company intends to use the proceeds of the extendible notes to facilitate the repatriation of off-shore earnings to Eli Lilly and Co. and that these funds will be used in a manner consistent with the company's domestic reinvestment plan for the American Jobs Creation Act of 2004.

Moody's said it also considered the potential effect on Eli Lilly's ratings of structural subordination arising from debt issued by a subsidiary.

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