Moody's rates Pfizer's notes Aa2

Moody's Investors Service said it assigned Aa2 ratings to the new euro- and sterling-denominated senior unsecured note offering of Pfizer Inc. and placed ratings under review for downgrade.

The agency said it expects to downgrade Pfizer's ratings to A1 if the Wyeth acquisition closes according to the agreed-upon terms.

Pfizer's Aa2 ratings reflect the company's leading industry position in the global pharmaceutical market, its excellent profitability, its strong cash coverage of debt and its strong liquidity, the agency said.

Despite recent patent expirations and other operating challenges, Pfizer continues to generate excellent cash flow, the agency noted.

The anticipated rating of A1 after the Wyeth acquisition reflects the increase in financial leverage and the reduction in cash levels that will result from the acquisition, Moody's said. Benefits of the acquisition will include greater scale and diversity, an improvement to the pipeline and significant potential for cost synergies, the agency added.

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