Fitch affirms Royalty Pharma

Fitch Ratings said it affirmed Royalty Pharma Finance Trust's issuer default rating, secured bank loan and senior unsecured ratings at BBB-.

The outlook is stable.

Royalty Pharma dramatically slowed its investment strategy in 2008 compared to the prior two years, the agency said. Assets totaling $230 million were purchased during the year, much lower than $1.56 billion spent in 2007. In conjunction with curtailed acquisition activity, the total debt-to-EBITDA ratio dropped to 3.7 times at the end of 2008 from 5.2 times in 2007.

Fitch said it expects that Royalty Pharma's investment strategy will continue to focus on long-lived royalty interests of promising therapeutics heavily weighted toward those already beyond initial market launch with remaining sales potential of at least $1 billion in annual sales. Fitch also anticipates that the company will use debt in a disciplined and timely manner to conduct acquisitions.

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