Moody’s provides A1 to Pfizer notes

Moody's Investors Service said it assigned a rating of A1 to the new senior unsecured note offering of Pfizer Inc.

There are no changes to Pfizer's existing ratings.

The outlook remains negative.

Uses of the proceeds may include general corporate purposes, including repaying a portion of outstanding commercial paper borrowings.

Moody’s said the A1 senior unsecured rating reflects the company’s position as one of the world's largest pharmaceutical companies, its strong diversity, its high profitability and its strong cash flow.

Pfizer has a conservative capital structure, with over $30 billion of cash and investments, cash coverage of debt of about 50% and gross debt/EBITDA of 2.1 times. Key branded products like Eliquis and Lyrica will continue to grow, as will the recently launched cancer drug Ibrance.

Combined with fewer products facing upcoming patent expirations, Pfizer's growth is healthier than it has been for several years, the agency said.

The A1 rating reflects Moody's expectation that Pfizer will sustain positive underlying revenue and earnings growth, solid credit ratios including debt/EBITDA of about 2 times, and very large cash holdings.

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