Moody's lowers Pfizer

Moody's Investors Service said it lowered the long-term ratings of Pfizer Inc. to Aa2 from Aa1 and kept the ratings under review for downgrade.

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

The action reflects some deterioration in Pfizer's standalone credit quality based primarily on the approaching Lipitor patent expiration, according to the agency.

"Today's rating action reflects Pfizer's standalone credit quality, which is no longer consistent with the Aa1 rating based on Pfizer's high patent exposures and a relatively weak late-stage pipeline," Michael Levesque, Moody's senior vice president said in a statement.

Offsetting factors include Pfizer's recent dividend reduction, which will boost free cash flow, as well as the flexibility provided by raising the effective tax rate, the agency noted.

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