Fitch rates Pfizer notes A+

Fitch Ratings said it assigned an A+ rating to Pfizer Inc.'s senior unsecured notes offering.

The proceeds will be used for general corporate purposes, including repaying a portion of its outstanding commercial paper.

The ratings reflect a reduced need for significant additional debt as the company terminated its merger agreement with Allergan following new tax rules issued by the U.S. Treasury Department, Fitch said.

The new rules significantly reduced the tax benefits from the proposed transaction, the agency explained.

While the acquisition would have materially broadened Pfizer's product portfolio, it would have also significantly increased debt and leverage, Fitch said.

Despite an expectation that Pfizer will continue to generate stable operating performance and significant free cash flow, the company’s leverage does remain strained by acquisitions and share repurchases during the past two years, the agency added.

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