Moody's downgrades senior unsecured ratings of Teva to Ba2
Moody's Investors Service earlier today downgraded the senior unsecured ratings of Teva Pharmaceutical Industries and its subsidiaries to Ba2 from Baa3. Moody's also assigned a Ba2 Corporate Family Rating, Ba2-PD Probability of Default Rating, and SGL-3 Speculative Grade Liquidity Rating. The rating outlook is stable. "The downgrade of Teva's ratings to speculative grade reflects the challenge of managing its significant debt burden while facing a prolonged period of earnings erosion. While Teva's cost restructuring program will help to partially offset declines, execution risk is high. In addition, we believe earnings declines from Copaxone and its US generics business will be severe, and that meaningful deleveraging to under 4 times gross debt/EBITDA will take several years to achieve," said Morris Borenstein, Moody's Assistant Vice President.