Fitch rates Amgen bonds BBB

Fitch Ratings said it assigned a BBB rating to Amgen Inc.'s proposed $1 billion to $1.5 billion of euro- and pound sterling-denominated debt issuance announced Monday as well as last week's $6 billion of senior bonds issued in three-, five-, 10- and 30-year tranches.

The agency maintains a BBB issuer default rating and F2 short-term issuer default rating for Amgen and rates its bank loan and existing senior bonds at BBB and its commercial paper at F2. The outlook is stable.

The proceeds of the new debt are expected to be used for general corporate purposes, including funding of an acceleration of the company's financial policy directed at returning a significant portion of profit to equity holders via a new dividend and share repurchasing.

Fitch expects the company's leverage to increase to around 3.5 times in 2011 and 2012. While this level is more reflective of a lower rating category, Amgen's credit profile is supported by very strong liquidity, the agency said.

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