S&P: Amgen unaffected by share buyback

Standard & Poor's said Wednesday that the ratings on pharmaceutical company Amgen Inc. (A+/stable/A-1) will not be affected by a recently authorized $5 billion share buyback program.

The company still has about $600 million left on an existing program.

S&P said the company's business prospects appear bright, with sales projected to grow about 30% in 2004. Moreover, with limited internal cash needs, free cash flow should easily exceed the $2 billion annual rate demonstrated so far this year.

Moreover, cash and investments exceed debt by almost the same amount, providing ample capacity to execute these repurchases in a measured manner without impairing very strong credit measures, the agency said.

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