Fitch rates Pfizer notes A+

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

Net proceeds will be used for general corporate purposes and the repayment of a portion of the company's commercial paper borrowings.

The ratings apply to roughly $42.1 billion of debt outstanding at Dec. 31.

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, the agency said.

The company's net cash outlays for acquisitions and share repurchases were roughly $22.5 billion during 2016, while FCF was $6.8 billion.

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

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