Fitch Puts Pfizer on Watch Negative, Notes Leverage Increase
June 19 2019 - 2:38PM
Dow Jones News
By Michael Dabaie
Fitch Ratings said it placed Pfizer Inc. (PFE) ratings on Rating
Watch Negative.
Pfizer's proposed deal for Array BioPharma Inc. (ARRY) makes
strategic sense, according to Fitch, increasing its presence in
oncology. Pfizer this week agreed to buy Array for $10.64 billion
in cash.
Fitch said it expects the acquisition will increase leverage,
which is already currently stressed for Pfizer's current "A+"
rating.
"The company continues to demonstrate little appetite for
reducing leverage, despite the more tax-efficient access to its
international cash generation provided by 2017 tax reform," Fitch
said.
The ratings agency said it will resolve the Negaive Watch when
the deal closes and it anticipates a one-notch downgrade of the
Long-Term Issuer Default Rating to "A" is likely.
Write to Michael Dabaie at michael.dabaie@wsj.com
(END) Dow Jones Newswires
June 19, 2019 14:23 ET (18:23 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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