Fitch moves AstraZeneca view to positive

Fitch Ratings said it revised the outlook on AstraZeneca plc to positive from stable and affirmed its long-term issuer default and senior unsecured debt ratings at BBB+.

“The revision of the outlook follows the completion of AZ's acquisition of U.S. specialist pharmaceutical player, Alexion, the increasing contribution from its recently launched innovative drugs, and active portfolio management. We expect AZ to continue with its measured capital allocation policy. Combined with gradually improving core profitability and cash conversion, this informs our view that funds from operations (FFO) net leverage will improve to under 3.5x by 2022-23, in line with our positive sensitivities,” Fitch said in a press release.

The agency said it sees AZ’s sales growth in the double digits in 2021-2023 on oncology product launches, and Alexion's rare diseases immunology treatments.

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