Fitch applies A+ to Pfizer notes

Fitch Ratings said it assigned an A+ rating to Pfizer Inc.'s sterling-denominated notes offering.

The notes are being offered in exchange for existing sterling-denominated notes.

The ratings apply to roughly $43.1 billion of debt outstanding as of Oct. 1.

“Despite Fitch's expectation that Pfizer will continue to generate stable operating performance and significant free cash flow (FCF), leverage remains high relative to the A+ rating level, stemming from debt funding of acquisitions and share repurchases,” the agency said in a news release.

“The company's net cash outlays for acquisitions and share repurchases were roughly $22.4 billion during 2016, while FCF was $6.8 billion.

“As a result, Pfizer currently has no flexibility to increase leverage further within the context of its A+ rating,” Fitch explained in the release.

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