Fitch rates Pfizer notes A+

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

Net proceeds will be used to fund the purchase of the company's 6.2% notes due March 15, 2019.

The ratings apply to roughly $42.3 billion of debt outstanding at July 3.

Despite Fitch's expectation that Pfizer will continue to generate stable operating performance and significant free cash flow (FCF), leverage remains strained, stemming from acquisitions and share repurchases during the past two years.

The company's net cash outlays for acquisitions and share repurchases were roughly $30.5 billion during the period (excluding the subsequent $14 billion acquisition of Medivation), while FCF was $7 billion.

As a result, Pfizer currently has little-to-no flexibility to increase leverage further within the A+ rating category, the agency explained.

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