Johnson & Johnson Strikes Confident Tone on Credit Rating
August 28 2019 - 1:21PM
Dow Jones News
By Colin Kellaher
Johnson & Johnson (JNJ) on Wednesday expressed confidence in
its top-notch credit ratings after Moody's Investors Service
revised its outlook to negative from stable following this week's
verdict in the Oklahoma opioid case.
Moody's, citing J&J's "excellent business profile and
outstanding financial flexibility," affirmed its "Aaa" rating on
the drug maker, but the agency also warned that opioid and talc
litigation, along with rising regulatory efforts targeting drug
pricing, could put pressure on the rating over the next 12 to 18
months.
An Oklahoma judge on Monday ordered J&J to pay $572 million
for contributing to the state's opioid-addiction crisis, a verdict
the New Brunswick, N.J., company will appeal.
In a statement, J&J said it was "pleased" that Moody's had
affirmed its rating and struck a confident note on the issues the
agency had flagged.
"As we have previously stated, Johnson & Johnson has strong
grounds to overturn the Oklahoma judgment and we are in the process
of preparing our appeal," the company said in a statement. "We
believe we have the facts and the law on our side in litigation
matters referenced by Moody's."
Johnson & Johnson shares were recently down almost 2% to
$127.10.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
August 28, 2019 13:06 ET (17:06 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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