Moody's alters AstraZeneca view to negative

Moody's Investors Service said it changed the outlooks to negative from stable and affirmed AstraZeneca plc's and Zeneca Wilmington Inc.'s A3 senior unsecured ratings.

The revision follows AstraZeneca reporting plans to acquire Alexion Pharmaceuticals for around $39 billion, excluding fees. The transaction, which is subject to regulatory and AstraZeneca and Alexion shareholder approvals, will be financed by new equity for around two-thirds of the total consideration and one third by cash, supported by new debt issuance or business cash flows.

"Today's outlook change to negative reflects the expected delay in AstraZeneca's deleveraging by about a year as a result of the proposed acquisition of Alexion and the risk that Moody's-adjusted gross debt/EBITDA may not sustainably reduce to below 3x by the end of 2022," said Frederic Duranson, a Moody's assistant vice president and lead analyst for AstraZeneca, in a press release.

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