S&P rates Zoetis notes BBB-

Standard & Poor's said it assigned a BBB- rating to Zoetis Inc.'s proposed senior unsecured notes.

The notes will be issued in four tranches with maturities in 2016, 2018, 2023 and 2043. The amounts and coupons of each tranche will be determined by market conditions.

The notes will rank equally with the company's existing and future senior unsecured indebtedness, S&P said.

Zoetis will pay substantially all of the proceeds from the notes to Pfizer immediately prior to the completion of Zoetis' initial public offering. This notes offering is consistent with expectations, S&P said.

Key credit factors considered in include Zoetis' strong market positions in the animal health medicines and vaccines segment, good diversification across product categories and product lines and its direct relationships with customers, the agency said.

The company will benefit from its established research and development operations, continued access to Pfizer's proprietary compound library and the lesser role of generic competition in the animal health medicines and vaccines segment when compared with human health, S&P said.

Partially offsetting these factors are Zoetis' concentration in the animal health segment, the highly competitive nature of the industry and the operational risks associated with its transition from Pfizer, the agency said.

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