Fitch affirms AstraZeneca

Fitch Ratings said it affirmed the senior unsecured rating AstraZeneca plc at AA+ and its short-term rating at F1+.

The outlook is stable.

The ratings reflect AstraZeneca's strong competitive position within the pharmaceuticals industry, strong product portfolio, good geographical diversification, large U.S. sales force and large net cash position, the agency said.

The ratings are constrained by the company's relatively modest phase 3 product pipeline, rolling share repurchase program and the significant upcoming cash outflows to Merck & Co.

In January 2005, the company said it would distribute all of its net free cash flow to shareholders over the next three years. After this three-year period, Merck obligations will result in cash outflows of at least $3.3 billion, the agency said.

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