Moody's confirms Wyeth

Moody's Investors Service said it confirmed Wyeth's A3 senior unsecured long-term rating and Prime-2 commercial paper rating.

This concludes a review for possible upgrade begun on June 4, and the outlook is positive.

The agency said the confirmation reflects Wyeth's strong operating profile and its good financial metrics, offset by a series of operating challenges occurring since the initiation of the ratings review.

These include a potential generic entrant for Protonix, increased uncertainty related to the approval of Pristiq and the recent non-approvable letter for bifeprunox. Moody's believes these events create uncertainty related to Wyeth's future operating performance and its financial policies, precluding an upgrade at this time.

The positive outlook reflects the agency's expectation that cash flow relative to debt will remain in the A ranges and that financial policies will not dramatically shift following the company's recent share repurchase announcement or pending change in chief executive officer.

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