Moody's: Pfizer sale is negative

Moody's Investors Service said that Pfizer Inc.'s sale of its nutrition business to Nestle for $11.85 billion is credit-negative, despite the large influx of cash.

"Moody's believes the majority of the proceeds are likely to be used for share repurchases, absent compelling new business investments," Moody's senior vice president Michael Levesque said in a news release.

Pfizer is rated A1 with a stable outlook.

Although the sale of the nutrition business will result in reduced EBITDA and cash flow, the effect on Pfizer's credit ratios is not enough to affect the rating or outlook, the agency said.

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