S&P puts Pfizer on watch

S&P said it placed all of the ratings on Pfizer Inc., including its AA issuer credit rating, on CreditWatch with negative implications, reflecting a belief that the company is becoming more tolerant of adjusted net debt leverage slightly greater than 2x.

The company's short term rating of A-1+ is unaffected.

S&P said it expects to resolve the CreditWatch placement with a one-notch downgrade to AA- upon the consummation of the transaction.

The CreditWatch placement follows news of Pfizer's planned debt- and cash-financed acquisition of Array BioPharma Inc., the agency explained.

S&P said it estimates that the transaction will increase adjusted net leverage to about 2.5x for 2019, which is well above prior expectations of about 1.6x for 2019 and higher than the 1.7x in 2018.

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