Moody's lowers Pfizer, keeps Wyeth on review

Moody's Investors Service said it lowered the long-term rating of Pfizer Inc. to A1 from Aa2 and concludes a review for downgrade begun on Jan. 26 and continued on March 11. The action follows the anticipated closing of Pfizer's acquisition of Wyeth based on regulatory approvals.

Moody's affirmed Pfizer's Prime-1 short-term rating.

The outlook is stable.

"The downgrade of Pfizer to A1 from Aa2 is consistent with Moody's earlier expectations, and reflects excellent strategic benefits of the Wyeth acquisition, offset by higher financial leverage assumed in the transaction," Michael Levesque, Moody's senior vice president, said in a statement.

Moody's said the review is ongoing on Wyeth's A3 long-term, Prime-2 short-term ratings, depending on Pfizer's treatment of Wyeth's debt, the agency said.

Pfizer's A1 rating reflects the company's leading industry position in the global pharmaceutical market, its excellent profitability, its good cash coverage of debt and its strong liquidity position, the agency said.

The Wyeth acquisition provides Pfizer with increased scale and diversity, an improved pharmaceutical pipeline and significant synergy opportunities, Moody's said.

The A1 rating also reflects Pfizer's higher financial leverage following the deal, the agency noted.

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