Moody's Investors Service yesterday raised its outlook on Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) rating to "positive" from "stable", pointing to strong operating results by the generic pharmaceutical giant. It also believes that Teva will profit from pending expirations on patents for blockbuster drugs.
Moody's SVP Michael Levesque said, "Strong performance and good industry fundamentals could position Teva for a ratings upgrade, but this will depend on its pace of debt repayment following the recent Barr acquisition."
Moody said that it might be possible to upgrade its ratings for Teva, including the Baa2 senior unsecured issuer rating, if Teva continues to report strong results, reduces its debt, and raises liquidity. However, if Teva shows an unexpected downturn in operating performance or makes additional debt-financed acquisitions, the potential for a rating upgrade could be reversed.
Published by Globes [online], Israel business news - www.globes-online.com - on May 19, 2009
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