S&P: Pfizer unaffected

Standard & Poor's said its ratings on Pfizer Inc. (AAA/stable/A-1+) are unaffected by the company's announcement that it is increasing its annual dividend by 26%, or roughly $1.5 billion.

Though Pfizer is in the midst of a period during which several of its main products will experience increasing competition or face generic rivals, S&P said the company will continue to generate free cash flows well in excess of current needs.

Free cash flows for the 12 months ending Sept. 30 were $13.4 billion. The financial profile has also been enhanced by the reduction in debt with recently repatriated proceeds under the American Jobs Creation Act.

Pfizer's product portfolio remains diverse, and the product pipeline holds several promising candidates, the agency said. The rating and outlook reflect S&P's belief that Pfizer will maintain its conservative financial profile over the long term.

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