Fitch cuts Amgen

Fitch Ratings said it downgraded Amgen Inc.'s issuer default rating, senior debt and bank loan to A- from A and short-term issuer default rating and commercial paper to F2 from F1.

The outlook is stable.

The ratings consider Amgen's new financial policy directed at returning a significant portion of profit to equity holders via the initiation of a new dividend and aggressive share repurchasing, Fitch said. Amgen's management stated a target payout ratio of 60%, which does not deviate significantly from prior payouts made solely through share repurchases.

The ratings consider that Amgen's credit profile benefits from very strong liquidity at the end of the first quarter of 2011, stemming from strong free cash flow generation, around $2.3 billion of unused revolver capacity and $15.4 billion of cash and marketable securities, the agency said.

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