Fitch affirms Novartis

Fitch Ratings said it affirmed Novartis AG's AAA senior unsecured debt and F1+ short-term debt ratings.

The outlook is stable.

The ratings are supported by Novartis' good competitive position, its strong research and development capability as evidenced in its good portfolio and its superior late-stage product pipeline, the agency said. The company's solid patent protection profile and its large sales force further enhance its credit profile.

These strengths more than compensate for its under-representation in the United States and significant presence in non-ethical pharmaceuticals businesses, the agency said.

The company's ethical pharmaceutical turnover grew 9% in the first nine months of 2005, ahead of the global market, due to Novartis' relatively young portfolio. Although the non-ethical pharmaceutical businesses are profitable in themselves, they dilute both the group EBITDA margin and return on capital, given their relatively lower EBITDA margins (19% in FY04), the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.