Moody's gives Abbott notes A1

Moody's Investors Service said it assigned A1 ratings to Abbott Laboratories' new $3 billion senior unsecured notes and placed these ratings on review for possible downgrade. Its existing senior unsecured notes rated A1 and senior unsecured shelf rating of provisional A1 remain on downgrade review. The agency said it affirmed its prime-1 short-term rating.

The proceeds will be used to refinance short-term borrowings, including commercial paper, Moody's said.

While this transaction will help to restore some liquidity cushion, the agency said Abbott is expected to carry a substantial amount of short-term debt, including commercial paper as well as maturities of both bank loans and bonds.

The ratings reflect the company's large size and franchise strength in diverse product offerings, Moody's said.

Unlike other branded pharmaceutical companies, Abbott benefits from a low level of patent expiry risk, the agency added.

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