Fitch: Pfizer unaffected

Fitch Ratings said it does not expect Pfizer Inc.'s divestiture of its nutritionals business to Nestle SA for $11.85 billion to materially affect the company's current ratings or stable outlook. Pfizer has an A+ long-term issuer default rating and an F1 short-term issuer default rating. Its senior debt and bank loans are rated A+, and its commercial paper is rated F1.

The divestiture is a partial realization of Pfizer's strategy to streamline its corporate structure toward a sole focus on human medicines. The agency said it recognizes the flexibility afforded by Pfizer's superior cash flow generation, which is expected by Fitch to continue despite top-line pressures.

Pfizer has demonstrated financial discipline by reducing the debt load that nearly tripled with the $68 billion acquisition of Wyeth in October 2009, the agency said. Total debt leverage fell to 1.29 times at the end of 2011 from 2.2 times at the end of 2009. Fitch believes that leverage will be consistent with the current rating category while Pfizer contends with the revenue and margin pressures that the agency anticipates over the ratings horizon.

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