Fitch rates Royalty Pharma loan BBB-

Fitch Ratings said it affirmed Royalty Pharma Finance Trust's BBB- issuer default and secured bank loan rating and assigned a BBB- rating to its $200 million seven-year unsecured term loan debt and $100 million increase to the company's existing senior secured credit facility.

The outlook is stable.

Ratings reflect Royalty Pharma's investment strategy to acquire secure and long-lived royalty interests of promising therapeutics in order to maintain a diversified asset portfolio with a weighted average royalty remaining life of at least 10 years, the agency said.

The company is expected to maintain a leverage target of between 3.5 times and 4.5 times pro forma for the full-year effect of any acquisitions and financing, Fitch said.

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