Teva Secures Fitch Investment-Grade BBB- Rating, Citing AUSTEDO and AJOVY Growth
Fitch upgraded Teva’s corporate credit rating to investment grade BBB- with stable outlook from BB+ and raised senior unsecured debt ratings to BBB-. The agency highlighted Teva’s improved financial flexibility driven by margin gains from AUSTEDO®, AJOVY® and UZEDY® sales and upcoming olanzapine LAI launch.
1. Fitch Rating Upgrade
Fitch Ratings raised Teva’s corporate credit rating to investment grade BBB- with a stable outlook from BB+ and upgraded the company’s senior unsecured debt and credit facilities to BBB- from BB+.
2. Drivers of Credit Improvement
Fitch highlighted Teva’s sustained financial flexibility gains driven by margin improvements in its higher-margin innovative and biosimilar portfolio, led by AUSTEDO®, AJOVY® and recent UZEDY® launches alongside the anticipated olanzapine LAI approval.
3. Impact on Financial Flexibility
The investment-grade rating is expected to lower Teva’s borrowing costs, support operating margin expansion through ongoing efficiency programs and bolster the balance sheet, complementing Teva’s BB+ rating from S&P and Ba1 positive outlook from Moody’s.