Moody's cuts Amgen

Moody's Investors Service downgraded Amgen Inc.'s senior unsecured notes, debentures, convertible notes, medium-term note program and bank credit facility to A3 from A2, prospective senior unsecured shelf rating to prospective A3 from prospective A2, prospective subordinated shelf rating to prospective Baa1 from prospective A3, prospective preferred stock shelf rating to prospective Baa2 from prospective Baa1, short-term rating to prime-2 from prime-1. This action concludes a review for possible downgrade that began in March.

The outlook is stable.

The downgrade reflects expected erosion of sales, various competitive pressures from branded and generic companies and high reliance in the late-stage pipeline on one product, Moody's said.

The rating also considers Amgen's good cash flow relative to debt, cost reductions and potential long-term opportunities in its pipeline, the agency said.

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