Fitch downgrades Amgen

Fitch Ratings said it downgraded Amgen Inc.'s issuer default rating, senior debt and bank loan to BBB from A- and affirmed its short-term issuer default rating and commercial paper at F2.

The outlook is stable.

The agency said the downgrade stems from an acceleration of Amgen's new financial policy, originally announced in April, directed at returning a significant portion of profit to equity holders via the initiation of a new dividend and aggressive share repurchasing. Fitch expects funding for the new strategy to be primarily derived from new debt issuances, pushing the company's leverage ratio to around 3.5 times in 2011 and 2012.

While leverage is more reflective of a lower rating category, Amgen's credit profile is supported by very strong liquidity, the agency said. In addition, Fitch expects leverage to improve to 3 times by 2014 mainly due to strengthening profitability.

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