Moody’s revises Pfizer view to negative

Moody’s Investors Service said it revised its outlook for Pfizer Inc. to negative from stable and affirmed its ratings, including its A1 senior unsecured rating.

This outlook revision and rating affirmations follow the announcement that Pfizer will acquire Seagen Inc. for about $43 billion, to be financed largely with incremental debt and cash on hand, the agency said. The acquisition is subject to regulatory and other approvals and is expected to close in late 2023 or early 2024.

"The Seagen acquisition will increase Pfizer's financial leverage, but will also bring material growth opportunities to mitigate late-decade pressures associated with patent cliffs and the U.S. Inflation Reduction Act," stated Michael Levesque, a Moody’s senior vice president, in a press release.

The agency said it projects Pfizer’s pro forma gross debt/EBITDA at 3.3x to 3.5x at close, but anticipates deleveraging in 2024.

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