Fitch rates Amgen notes A-

Fitch Ratings said it assigned an A- rating to Amgen Inc.'s proposed debt issuance comprising five-, 10-, and 30-year unsecured notes.

The company has an issuer default rating of A-, senior unsecured debt rating of A-, bank loan rating of A-, short-term issuer default rating of F2 and commercial paper rating of F2.

The proceeds will be used for general corporate purposes, including funding for a new financial policy.

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 will drive an increase in leverage, Fitch said.

The agency said it anticipates that funding for the new strategy, which targets a payout ratio of 60%, will be derived from incremental debt, given a need to utilize domestic cash to conduct the expected shareholder-friendly actions.

The company's credit profile benefits from strong liquidity stemming from strong free cash flow generation, Fitch added.

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