Moody’s changes Pfizer to negative

Moody's Investors Service said it affirmed the ratings of Pfizer Inc. and related subsidiaries, including the A1 senior unsecured long-term rating and the Prime-1 commercial paper rating.

The outlook was revised to negative from stable.

This action follows the announcement that Pfizer will acquire Anacor, Inc. for about $5.2 billion.

"The affirmation reflects Pfizer's strong financial profile and the relatively modest size of the Anacor deal in relation to Pfizer's overall business profile. However, the outlook change to negative reflects a rising possibility that Pfizer's acquisition strategy will erode its credit profile to one no longer consistent with the A1 rating," Moody's senior vice president Michael Levesque said in a news release.

"Although Pfizer will fund Anacor with existing cash, the deal will reduce Pfizer's U.S. cash levels, increasing the likelihood of future debt issuance for dividend payments, share repurchases or acquisitions."

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