Moody's: Amgen notes Baa1

Moody's Investors Service said it assigned a rating of Baa1 to the new euro- and sterling-denominated debt issuance of Amgen Inc.

Amgen is issuing $1 to $1.5 billion of euro- and sterling-denominated debt to support its share repurchases and for general corporate purposes.

The outlook remains stable.

Moody's said it views the debt offering negatively because gross debt levels are rising to support share repurchases rather than business-enhancing opportunities.

However, the agency said it previously incorporated the possibility of additional near-term debt issuance in the downgrade of Amgen's senior unsecured rating to Baa1 from A3 on Nov. 7.

The Baa1 rating continues to reflect Amgen's strong position as the world's largest standalone biotechnology company, its high margins and its good cash flow, Moody's said.

Risk factors include product concentration risk, financial leverage that is somewhat higher than most global pharmaceutical peer companies and high exposure to government health care payers, the agency said.

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