S&P applies AA to Pfizer notes

S&P said it assigned its AA rating to Pfizer Inc.'s announced offering of senior unsecured notes, to be issued in various tranches.

The company plans to use the proceeds to refinance commercial paper, as well as for general corporate purposes.

Pfizer’s AA corporate credit and senior unsecured debt ratings remain unchanged.

S&P said it sees the proposed transaction as leverage neutral. Also, the agency’s overall assessment of Pfizer's business and prospects remain unchanged, with the estimates of top line growth of about 6%-7% in 2016 and EBITDA margins in the 40% range.

Coming off the cancellation of its proposed merger with Allergan plc, the agency believes Pfizer will continue to look at acquisitions, with a focus on late-stage prospects, such as the recently announced roughly $5.2 billion acquisition of Anacor Pharmaceuticals Inc., in order to further expand its near-term product pipeline and drive future growth. Anacor has a late-stage topical-based treatment for psoriasis, crisaborole, under development.

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